Holder Distribution Phase

Definition ∞ The holder distribution phase is a period in a digital asset’s market cycle characterized by a shift in ownership, where long-term holders begin selling their assets to new or short-term investors. This phase often occurs after a significant price increase, indicating a potential deceleration or reversal of the upward trend. It reflects a transfer of assets among different investor cohorts.
Context ∞ Understanding the holder distribution phase is important for interpreting market sentiment and potential price corrections in crypto news. Analysts frequently refer to this phase to explain periods of market consolidation or to forecast future price movements based on changes in ownership patterns.