Dip Accumulation

Definition ∞ Dip accumulation is a strategy where investors purchase an asset after a price decline, expecting its value to rise again. This approach involves buying incrementally as the price falls, aiming to achieve a lower average purchase cost. It relies on the belief that the asset’s fundamental value remains strong despite temporary market corrections. This method seeks to capitalize on short-term price weakness.
Context ∞ News related to dip accumulation frequently appears during market corrections or bearish phases in the cryptocurrency space. Reports may cite on-chain data indicating large wallet addresses adding to their holdings during price drops. This behavior is often interpreted as a signal of confidence from long-term investors in digital assets. It offers insight into investor sentiment during volatile periods.