Definition ∞ A holder accumulation phase is a period characterized by a sustained increase in the holdings of a particular digital asset by long-term investors or “holders.” During this phase, market participants typically acquire assets with the intention of retaining them for extended durations, often despite short-term price fluctuations. This activity suggests conviction in the asset’s future value and can precede significant price appreciation. It reflects a shift from speculative trading to long-term positioning.
Context ∞ The holder accumulation phase is a key on-chain metric observed by analysts to gauge underlying market sentiment and potential future price trends. News reports frequently reference this activity as an indicator of strong fundamental support for an asset. Recognizing this phase helps investors understand periods of consolidation and potential market reversals.
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