Structural Demand Zone

Definition ∞ A structural demand zone identifies a price area on a chart where significant buying interest has historically emerged, leading to price reversals or strong support. This zone is typically characterized by a concentration of past trading activity, indicating a sustained presence of buyers. It reflects an underlying market dynamic that supports the asset’s price. Identifying these zones helps predict future price movements.
Context ∞ Technical analysts in crypto news often highlight structural demand zones when providing market forecasts and identifying potential entry points for digital assets. These zones are crucial for understanding market psychology and where large market participants may be accumulating. Reports on price action and support levels frequently refer to these areas. The presence of a strong structural demand zone can signal resilience in an asset’s price.