Investor Accumulation Trend

Definition ∞ An Investor Accumulation Trend indicates a sustained pattern where a significant number of investors are increasing their holdings of a particular digital asset over time. This trend suggests a collective sentiment of confidence in the asset’s future value, as participants actively buy and retain coins rather than selling them. It can be observed through on-chain data showing a net flow of assets into long-term storage wallets or increasing illiquid supply. Such a trend often precedes periods of price appreciation.
Context ∞ Investor accumulation trends are regularly featured in market analysis and on-chain reports, serving as a key indicator of underlying market strength. News often references these patterns to explain periods of price stability or upward movement, reflecting a growing conviction among market participants. A strong accumulation trend suggests a robust demand side for the digital asset.