Long-term holder stability refers to the tendency of long-term investors in digital assets to retain their holdings despite market fluctuations. This metric indicates a strong conviction among a segment of the investor base, who are less likely to sell their assets during periods of volatility or price declines. It reflects a belief in the fundamental value or future growth potential of the asset. High long-term holder stability often suggests a resilient supply side, capable of absorbing selling pressure from short-term traders.
Context
In cryptocurrency markets, long-term holder stability is a crucial on-chain metric used to assess market health and potential price bottoms. News reports frequently highlight periods of increasing stability among these holders as a bullish sign, indicating a reduced circulating supply available for immediate sale. This phenomenon is particularly relevant during market corrections, as it suggests a solid foundation of committed capital supporting the asset’s value.
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