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What is a Floor in Cryptocurrency?
A floor, or support level, in cryptocurrency is a price point where demand for the digital asset is strong enough to prevent its value from falling below that point. This can be seen as an indicator of investor confidence and an assurance that the asset will not drop too far before buyers step in and purchase it at the current market rate. A floor also provides a baseline for trading as investors know they can expect prices to remain above this level unless there are significant market events that cause major shifts in pricing. Floors provide stability and security to markets, allowing traders to manage their risk more effectively.
