Accumulation Slowdown

Definition ∞ Accumulation slowdown describes a decrease in the rate at which market participants acquire a digital asset. This phase indicates diminishing buying pressure following a period of substantial acquisition, suggesting a potential shift in market sentiment or a pause in upward price momentum. It can precede market consolidation or a price correction as the asset’s demand weakens.
Context ∞ Observing an accumulation slowdown is crucial for market analysts assessing the sustainability of recent price advances in cryptocurrencies. This metric often signals that a prior strong buying trend is losing steam, prompting investors to consider their positions. Future market movements frequently hinge on whether this slowdown is temporary or a precursor to broader selling activity.