Definition ∞ Short-term price support refers to a price level at which a digital asset tends to stop falling and potentially reverse its downward trend. This level is typically identified by technical analysis, often corresponding to previous lows or areas of concentrated buying interest. It indicates a temporary floor where demand is sufficient to absorb selling pressure. Such support levels are dynamic and can be influenced by market sentiment and trading volumes.
Context ∞ Crypto news often highlights short-term price support levels when analyzing market movements and predicting immediate price action. Traders use these levels to inform entry and exit points, expecting a bounce or a consolidation. A sustained break below a key support level can signal further declines, while holding above it may indicate a temporary stabilization. Monitoring these levels provides immediate context for understanding daily market fluctuations.
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