Definition ∞ Holder selling refers to the act of long-term holders of a digital asset liquidating their positions, often after a significant price increase. This activity can indicate a shift in market sentiment, where those who acquired assets at lower prices decide to realize profits. Analyzing holder selling patterns provides insights into market conviction and potential supply dynamics. It often signals a period of price consolidation or correction.
Context ∞ On-chain analytics frequently track holder selling behavior, with news reports often highlighting trends among different cohorts of asset holders. Discussions focus on whether selling by long-term holders signals a market top or simply healthy profit-taking. A sudden increase in holder selling can exert downward pressure on prices. Observing these patterns helps market participants assess the strength of current price movements and anticipate future market direction.
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