Structural Supports

Definition ∞ Structural Supports refer to the underlying price levels for a digital asset where significant buying pressure consistently appears, acting as a buffer against further price drops. These supports are formed by the aggregate cost basis of various investor cohorts, particularly long-term holders, who are inclined to defend their positions. They represent areas of strong demand that absorb selling pressure. These levels are crucial for maintaining market stability during periods of volatility.
Context ∞ Crypto news often highlights Structural Supports as key zones to watch during market downturns, indicating where price declines might halt. Analysts often examine on-chain data to identify these collective cost bases, which frequently act as psychological and economic barriers. The resilience of these supports is a critical factor in assessing the potential for market recovery or further consolidation.