How does a cryptocurrency price work?

Could you please elaborate on how cryptocurrency pricing functions? I'm curious to understand the dynamics behind its valuation. Does it rely solely on market supply and demand, or are there other factors at play? I've heard rumors about mining difficulty, transaction fees, and even the sentiment of the crypto community, but I'm not entirely sure how they all contribute. Could you break it down for me in a way that's easy to comprehend? I'm interested in grasping the fundamentals of how these digital assets are priced and what factors influence their fluctuations.