Accumulation Trend Score

Definition ∞ An Accumulation Trend Score quantifies the rate at which market participants are acquiring a digital asset. This metric tracks the net flow of assets into wallets that exhibit long-term holding patterns, indicating prevailing buying pressure. A higher score suggests strong conviction among holders to retain or increase their positions. This provides insight into shifts in market sentiment and potential future price movements.
Context ∞ The Accumulation Trend Score frequently appears in news reports when large entities are observed making substantial purchases of a cryptocurrency. Analysts cite this score to support arguments regarding an asset’s long-term value proposition or to predict market reversals. Monitoring this trend helps in understanding underlying demand dynamics beyond short-term price fluctuations.