Definition ∞ Holder sentiment refers to the collective attitude and disposition of long-term holders of a digital asset regarding its future price performance and utility. This sentiment is often derived from on-chain data, social media analysis, and market behavior, indicating whether holders are accumulating, distributing, or maintaining their positions. It serves as a gauge of underlying confidence.
Context ∞ News reports frequently reference holder sentiment as a key indicator for assessing the stability and potential trajectory of digital asset prices. Strong positive sentiment among holders can act as a buffer against short-term selling pressure, suggesting a belief in the asset’s fundamental value. Conversely, declining sentiment might signal a loss of confidence, prompting further market analysis and speculation.
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