Definition ∞ Genuine accumulation describes a sustained period where an asset is consistently acquired by long-term holders, often at lower price levels, with minimal immediate intention to sell. This behavior is characterized by significant net inflows into cold storage or staking protocols, reduced selling pressure from established wallets, and a gradual absorption of available supply. It indicates strong underlying belief in the asset’s future value. This process suggests a strengthening of the asset’s ownership base.
Context ∞ “Genuine accumulation” is a term frequently used in cryptocurrency market analysis to identify periods of fundamental strength for digital assets. News reports often highlight on-chain data showing addresses holding assets for extended durations or moving them off exchanges as evidence of this phenomenon. The presence of genuine accumulation is often seen as a precursor to significant price appreciation, signaling strong conviction among market participants.
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