Definition ∞ Price support failure occurs when an asset’s price falls below a previously established level where buying interest was expected to halt further declines. In cryptocurrency trading, this signifies a breakdown of a critical technical analysis level, indicating that demand at that price point has been insufficient to absorb selling pressure. Such an event often leads to accelerated price depreciation as stop-loss orders are triggered and market sentiment turns more bearish. It is a significant signal for traders and can prompt re-evaluation of market positions.
Context ∞ Price support failure is a closely watched technical event that can trigger significant market movements and shifts in investor confidence. Traders often adjust their strategies in response to these breakdowns, anticipating further downside potential. The ability of a digital asset to hold key support levels is a critical factor in assessing its short-term price stability.
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