Definition ∞ Spot momentum refers to the tendency of an asset’s price to continue moving in its current direction in the immediate or near term. This concept is utilized in technical analysis to identify assets experiencing strong buying or selling pressure. Traders often use spot momentum indicators to gauge the strength and potential continuation of price trends in the spot market for digital assets.
Context ∞ The assessment of spot momentum is a common practice among traders analyzing cryptocurrency markets for short-term opportunities. Discussions frequently revolve around the effectiveness of various technical indicators in predicting price direction and the influence of market sentiment on short-term price action. Future analysis will likely continue to refine methods for identifying and capitalizing on these transient price movements.
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