Definition ∞ Accumulation failure occurs when a digital asset fails to attract sufficient buying interest to sustain its price. This indicates a lack of market confidence, preventing upward price movement despite previous periods of increased holding. It signals that demand is not adequately absorbing available supply, often leading to price stagnation or decline.
Context ∞ This term is frequently discussed in market analyses of digital assets when an expected upward price movement does not materialize. Observers monitor on-chain metrics for signs of renewed accumulation or further distribution, which impacts short-term price forecasts. The absence of strong institutional or retail buying can prolong bear market conditions.