Definition ∞ An investor conviction signal indicates strong belief in a digital asset’s long-term value. This metric or behavioral pattern reveals a robust belief among market participants regarding the sustained value or future growth trajectory of a specific cryptocurrency. It often manifests through prolonged holding periods, consistent accumulation by significant market players, or resilience in positive sentiment despite short-term price fluctuations. Such signals suggest a reduced likelihood of panic selling.
Context ∞ Cryptocurrency analysts and news outlets often reference investor conviction signals to gauge market stability and predict potential future price movements. Observing metrics like HODL waves or accumulation trends helps in understanding underlying market strength. The presence of strong conviction can mitigate the impact of short-term market corrections.
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