A structural demand floor represents a persistent and fundamental level of buying interest for a digital asset, typically driven by long-term holders, institutional accumulation, or strong underlying utility. This floor is not merely a technical support level but rather a price point at which sustained demand consistently absorbs selling pressure. It suggests a robust base for the asset’s value. This floor can limit significant downward price movements over extended periods.
Context
News often discusses the formation of a structural demand floor during prolonged bear markets or periods of significant adoption, indicating a growing conviction among investors. On-chain metrics, such as accumulation trends by large entities, are frequently cited as evidence of such a floor. Recognizing this level helps long-term investors assess an asset’s fundamental support.
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