Holder conviction firm describes a market sentiment where long-term holders of a digital asset exhibit strong confidence in its future value, resisting selling even during price declines. This term indicates a low willingness to part with assets, suggesting a belief in sustained growth or utility. A firm holder conviction often correlates with reduced liquid supply and can contribute to price stability or upward pressure over time. It reflects a collective commitment to the asset’s long-term prospects.
Context
Analyzing holder conviction is a key aspect of on-chain market analysis, providing insights into the psychological state of an asset’s investor base. Periods of strong holder conviction, evidenced by low selling activity from seasoned wallets, are often interpreted as bullish signals for the asset’s future price trajectory. Conversely, a weakening of this conviction might suggest increasing selling pressure or a shift in market outlook.
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