A rally is an upward price movement that persists over the period being discussed. It can describe a single asset, a sector or a broad market. The term does not require a new record high and is not limited to a rebound after a decline.
Different scales of a rally
An intraday rally may last hours, while a longer rally can unfold over days or weeks. A bear-market rally is an advance within a broader downtrend. For example, a token can recover part of a previous decline and still remain well below earlier prices. The short-term gain and longer-term weakness can both be accurate descriptions.
What can support the advance
Fresh buying, improving expectations or short sellers buying back positions can contribute to a rally. The latter process, called short covering, can lift prices without proving that new long-term demand has arrived. Trading volume and the number of participating assets provide context, but neither guarantees continuation.
A rally describes movement, not its eventual destination. It can lose momentum, reverse or become part of a longer uptrend. Its presence alone does not establish the end of a bear market or justify a particular price target.