A price volatility precursor is any market indicator or event that typically precedes a period of significant price fluctuations in a digital asset. These precursors can include specific on-chain metrics, derivatives market signals, or macroeconomic announcements. Recognizing these signals helps traders anticipate and prepare for potential rapid price changes.
Context
News reports often analyze price volatility precursors to provide insights into potential market movements and associated risks. Understanding these signals is essential for navigating the dynamic cryptocurrency landscape, allowing investors to adjust their strategies in anticipation of increased market instability or opportunity.
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