01Definition
Absorption describes selling repeatedly meeting enough buying to limit or recover the price decline.
02Why it matters
The response to selling can be more informative than the color of the last candle.
03What to check
- Comparable sell sizes and time windows
- Downside and recovery after each sell
- Changes in liquidity and surrounding buys
04Healthy / Dangerous
Healthy
Repeated sells meet recovery without losing the observed base.
Dangerous
One support buyer props up price while broader demand weakens.
05Beginner mistake
Calling smaller downside proof of absorption without checking liquidity.
06Takeaway
Compare the sell, the reaction, and the recovery.
See the idea
- 01
Three illustrative $10k sells coincide with drops of 20%, 7%, then 2%.
- 02
Later declines are smaller, but pool depth also changed.
- 03
Improved absorption is one explanation; deeper liquidity is another.
Try it on a token
See it in Meme Fast → InspectReview sell sizes, nearby buys, and price history. Candles and returned swaps have separate coverage; buyer independence is not verified.
Go deeper
Equal dollar sells are not identical tests if pool liquidity, routing, timing, or surrounding demand changed. Compare those conditions before interpreting reduced price damage as stronger demand.
Need the basics? Revisit 101A →