Definition ∞ An accumulation trend confirmed indicates that a digital asset’s supply is consistently moving into addresses with a history of extended holding periods. This pattern signifies strong conviction among market participants who are acquiring assets without immediate intent to sell. Such a trend reflects a shift from short-term trading to long-term holding behavior within the asset’s supply distribution.
Context ∞ The confirmation of an accumulation trend often signals a bullish sentiment among long-term investors, which can precede upward price movements. This pattern is particularly relevant in cryptocurrency markets where on-chain data provides transparency into holder behavior. Observing this trend helps analysts assess market strength and potential future supply shocks as fewer assets become available for sale.
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