Trading momentum is the rate at which the price of a digital asset is changing, reflecting the strength of either buying or selling interest in the market. Strong trading momentum indicates that prices are moving decisively in one direction, often accompanied by high trading volumes. It is a key concept for technical analysis and short-term trading strategies.
Context
Crypto news frequently discusses trading momentum to explain rapid price movements and identify potential market trends. Positive momentum can attract more buyers, further accelerating price increases, while negative momentum can lead to rapid declines. Understanding trading momentum is crucial for interpreting market sentiment and predicting short-term price trajectories.
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