Definition ∞ Holder conviction high refers to a strong belief among digital asset holders in the long-term value and future appreciation of their assets. This sentiment typically leads to reduced selling pressure and a preference for retaining assets, even during market fluctuations. It indicates a collective resolve to hold assets rather than liquidate them for short-term gains. High conviction contributes to market stability and resilience.
Context ∞ High holder conviction is a frequently discussed metric in crypto analysis, often associated with sustained price growth and a healthy market outlook. On-chain data, such as the duration assets remain in wallets, can provide indicators of this conviction level. When conviction is high, it suggests that market participants are less likely to sell during downturns, potentially limiting price declines.
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