Selling Pressure Increase

Definition ∞ A selling pressure increase signifies a rise in the number or volume of digital assets being offered for sale in the market. This heightened selling activity often outpaces buying demand, leading to downward pressure on asset prices. It can be triggered by factors such as investor fear, macroeconomic uncertainty, regulatory announcements, or large holders liquidating positions. An increase in selling pressure typically indicates a weakening market sentiment and can precede significant price corrections or extended downtrends.
Context ∞ A selling pressure increase is a key metric closely watched and reported in crypto news, especially during volatile periods. Analysts often look at on-chain metrics like exchange inflows or the behavior of long-term holders to gauge its intensity. Understanding this market dynamic is vital for investors to anticipate price movements and manage their risk exposure effectively.