What are whales
Whales are investors who hold very large amounts of a coin. They can be individuals, funds, exchanges, or early wallets. For example, a wallet with over 10,000 BTC is considered a whale. At 60,000 dollars per BTC, that equals 600 million dollars.
When a whale buys or sells heavily, the market reacts fast.
How whales influence the market
They create panic.
A whale sells a large amount. Price drops fast. Retail traders panic and sell. The dump accelerates.
They create FOMO.
A whale buys aggressively. Volume increases. Price breaks resistance. Many traders enter long too late, at high prices.
They hunt liquidity.
Whales know where leveraged positions sit. They push price into liquidation zones. They profit from stop losses.
They use fake orders.
They place large orders in the order book, then cancel them. This creates a false sense of strong demand or supply.
Real example
If a coin has 20 million dollars in daily volume and a whale sells 5 million in one hour, the impact is huge. Price can drop 5 percent or more in a short time.
How to avoid their trap
Do not trade on emotion.
If you see a big red or green candle, do not enter instantly. Wait for confirmation.
Watch volume closely.
Healthy moves come with steady volume, not one sudden spike followed by silence.
Avoid high leverage.
Whales target liquidation levels. If you use 20x or 50x leverage, you risk getting wiped out fast.
Use smart stop losses.
Do not place your stop exactly where everyone else does. Obvious levels are targets.
Track on chain data.
Monitor large transfers to exchanges. Big inflows can signal selling pressure.
Do not buy the top.
If a coin already pumped 30 percent in one day, whales may be taking profit.
What you must understand
Whales do not act randomly. They accumulate quietly and sell into euphoria. You should do the opposite. Buy when the market is calm. Take profit when the crowd gets greedy.
On Binance, you can analyze volume, order book data, futures open interest, and trade history. Use the data. Do not trade blindly.
When you learn to read whale activity, you stop being a victim. You become a prepared trader.
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