Definition ∞ A structural support test refers to a digital asset’s price declining to a previously established price level where significant buying interest or historical demand is expected to prevent further drops. This event determines the strength and validity of that support level. If the price holds at this level, it confirms the support; if it breaks below, it indicates a weakening market structure and potential for further decline.
Context ∞ Cryptocurrency news frequently reports on structural support tests to explain critical junctures in an asset’s price action. Observing how a digital asset reacts to these levels provides vital context for understanding its market resilience and potential future direction. A successful test can signal a rebound, while a failure often precedes further price depreciation, influencing investor sentiment and trading strategies.
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