Definition ∞ Seller Dominance describes a market condition where the supply of an asset significantly outweighs the demand, leading to sustained downward pressure on prices. In this scenario, sellers are more numerous or more urgent in their desire to liquidate holdings than buyers are to acquire them. This imbalance results in falling prices as sellers compete to find buyers. For digital assets, it signifies a period where market participants are primarily disposing of their cryptocurrencies.
Context ∞ News reports frequently cite Seller Dominance as a key indicator during market downturns or corrections in the crypto space. Understanding this dynamic helps explain price depreciation and market sentiment. Analysts often look for signs of easing seller pressure to predict potential market reversals or stabilization.
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