Waling action and its impact on star (XLM) prices
The cryptocurrency in the world was dominated by a small group of people known as “whales”, which have a significant part of the overall supply of the market. These powerful investors have a profound effect on the desired cryptocurrency, including the star movements (XLM). In this article, we will study the concept of whaling activity and its impact on star prices.
What are whales?
The whales refer to large and experienced cryptocurrency traders with a long -term coin. They often operate outside traditional market structures, allowing them to accumulate enormous wealth during trade and speculation. The term “whale” originated in the 1980s as the largest and most powerful whales in Wall Street.
How do whales affect star prices?
Whales play a crucial role in the production of stars (XLM), taking into account their massive holding capacity and trade. Here are some of the main ways whales affect XLM prices:
1
Market mood : Whales often have a large amount of XLM that can affect market mood. If they start selling or buying a significant amount of coins, it can cause price movements based on the collective opinion of other investors.
- Offer and Request : The number of whales holding XLM determines the supply and demand in the market. When more whale with a large amount of XLM enters the market, it creates a self -treatment cycle that drives prices up or down.
3
Trading Action : It is known that whales are active merchants when buying or selling huge XLM amounts on high -frequency stock exchanges or using other means. This action can lead to volatility and affect price movements.
- Liquidity : Whales often hold large amounts of XLM or invest in different assets. This liquidity contributes to the marketability of a coin, which can affect prices.
- Network Effect : Collective buying and selling power creates a network effect that drives price movements. As more whale enters the market with a large amount of XLM, cumulative buying pressure increases.
Examples of whale activity affecting star prices
Consider the following examples to illustrate the impact of whales on star prices:
1st
January 2020 : The largest whale known as “Doge” was accused of manipulation of XLM prices, widely trading with a large amount of coin. This event in January 2020 led to a huge sale that affected prices throughout the year.
February 2, **: February 2016: The whale group reportedly purchased about $ 20 million on February 4th for XLM, causing a significant increase in prices for several days.
3
March 2021
: The whaling investment XLM caused an increase in the purchase of pressure, increasing prices by more than 50%within hours.
Conclusion
Whale activity plays a key role in the production of star prices (XLM). The massive capacity and trading of these influential investors can generate self -evident cycles that raise prices up or down. In order to get insight into the whale, the marketing, supply and demand, trading activity, liquidity and network effects should be closely monitored by XLM prices.
As the cryptocurrency space continues to develop, it is important for investors and market players to remain informed of whaling and its possible impact on the prices of the Stars (XLM).