A 52-week high and low is the highest and lowest market price of a given asset over 52 weeks or one year.
The 52-week high/low is the highest and the lowest price at which a crypto token or other asset has traded over 52 weeks. Investors use it to analyze an asset’s current price to predict its future price movements. A tradable asset often garners more attention from investors when it nears its 52-week high or low.
The closing price of an asset determines the 52-week high/low. An asset may fluctuate above or below its 52-week record during a trading session. However, if the price does not close above or below this record, changes do not display as hitting a new high or low.
Investors in the financial markets can use this 52-week high/low metric to set their entry or exit point for a given asset. In most cases, these fluctuations signal that the asset has reached its peak or low and may not rise or fall in the short term.
As a result, the 52-week high/low metric offers a level of resistance or support for a given tradable asset. Alternatively, suppose a stock pushes past its 52-week high and continues climbing. In that case, it could be an indicator that there are factors generating momentum to carry the price above the previous high. Investors believe this momentum will continue pushing prices in the same direction, making it a good time to buy. The same rationale can be applied to assets that dip below their 52-week low.
The same applies when a stock hits a 52-week low but fails to register a new closing low. It is often an indication of a looming bottom. When that happens, short-sellers can start buying the asset to cover their positions.
Whether or not you believe in momentum when making investment choices, reviewing an asset’s 52-week highs and lows can help you make profitable decisions.
Join the thousands already learning crypto!