If it has been in position for over a week, you can safely say that it’s real and the seller wants to get filled on their position. The best clue is how long the sell wall has been around. There are a number of ways to guess what the motive of the sell wall is. The same goes for fake sell walls, just the opposite. The traders that bought above the whale’s position can get burned and lose their investments. Once everything has been set, the whale will then do a 360° turn and suddenly sell his assets. The walls give newbies a sense of confidence which in turn make them set their buy order at the top of the wall and make them believe that the present value is the new floor (resistance). If a huge wall appears, the price goes up. But if you see a buy/sell wall make sure you keep an eye on it as they can be canceled and reset within seconds.įor fake buy walls, whales place large orders that clone the high positive value of the currency. These walls might seem quite solid and unwavering, even confronting at times. This allows whales to purchase tons of cheap coins. In many cases, a sell wall is a fake oppression tool that’s used to keep prices far below the max. Some of these walls are legitimate, and it just means that a lot of people or one person with a lot of money believes that at that particular price it is the right decision to purchase, but sometimes these walls are attempts at price manipulation. The wealthy group of friends (whales) can now safely get to their 1m X crypto mark without raising the price exponentially! When they decide to get rid of their sell walls the price moves up accordingly! The result? People need to sell lower than the sell wall in order to liquefy their stock. What also happens next is the key: nobody else can sell above that sell wall price until it’s gone. After accumulating 1M X, they decide to get rid of their sell walls and the price will finally move up.
Whales can now accumulate 1M X crypto each without raising the price exponentially. Since nobody else can sell above that sell wall price until it’s gone, people need to sell lower than the sell wall which drives the price downwards. This constitutes so much volume being sold, that the buying pressure from others cannot buy all that wall in a reasonable time frame (it is possible, but it would take a very high buying pressure to do so that would only appear with this crypto being added to a new exchange or the announcement of a new partnership).
For this particular crypto, they decide to all sell their obtained crypto at $250. They now set a specific price they feel is low enough for them to be able to buy their 1Million X crypto. They will buy 200,000 of X crypto each during some time, so it doesn’t affect the price.