Definition ∞ On-chain buying pressure refers to the observable increase in demand for a digital asset directly recorded on its native blockchain. This is evidenced by metrics such as a rise in the number of active buying addresses, larger transaction volumes from accumulation wallets, or significant stablecoin movements onto exchanges intended for purchase. It indicates a genuine, verifiable intent by market participants to acquire and hold the asset. This pressure can precede price appreciation.
Context ∞ Identifying on-chain buying pressure is a critical analytical technique for cryptocurrency traders and investors seeking early signals of market strength. News often highlights reports from on-chain analytics firms detailing significant accumulation trends by large holders or increasing activity from new addresses. This data offers a more fundamental perspective on demand compared to exchange order book data, providing deeper insights into underlying market sentiment and potential future price movements.
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