Definition ∞ An accumulation signal indicates that investors are steadily purchasing a digital asset without causing a significant immediate price increase. This suggests a controlled buying phase, often by informed market participants. Such activity is typically observed through on-chain data analysis or consistent buying pressure on exchanges. It frequently precedes a period of upward price movement as demand slowly builds.
Context ∞ Monitoring accumulation signals is crucial for market participants seeking to identify early entry points into digital assets. News reporting on these indicators can significantly influence investor sentiment and trading strategies. Understanding these patterns helps interpret underlying market strength beyond transient price fluctuations.