Definition ∞ An accumulation base describes a market phase where an asset’s price stabilizes or declines slowly, indicating increased buying interest from long-term holders. This period typically follows a significant price reduction, with investors steadily acquiring assets without causing immediate upward price movement. It represents a foundational period of demand, preceding potential upward price shifts as supply diminishes and buying pressure mounts.
Context ∞ The presence of an accumulation base often signals a potential reversal from a bearish trend to a bullish one, as persistent buying activity absorbs available supply. Monitoring on-chain metrics for sustained wallet additions and reduced exchange outflows during such phases provides critical insight into market sentiment and future price trajectories. This phase is frequently discussed in analyses predicting market bottoms or shifts in investor behavior.
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