Short-Term Resilience

Definition ∞ Short-term resilience describes a digital asset’s or market’s ability to withstand and recover quickly from adverse price movements or negative events over a brief period. This indicates a market’s underlying strength and its capacity to absorb selling pressure without experiencing a prolonged decline. Assets demonstrating this trait often possess strong fundamentals or consistent buying interest.
Context ∞ Assessing short-term resilience is a key consideration for traders and analysts evaluating market stability during periods of volatility. Observing how quickly an asset rebounds from sudden drops provides insight into its immediate market sentiment and underlying demand. The presence of such resilience can suggest robust investor confidence even amid temporary market disruptions.