Whale activity and its impact on star prices (XLM)
The world of cryptocurrency was dominated by a small group of individuals known as "whales" that have a significant part of the total market offer. These executive investors have a deep impact on the price movements of their preferred cryptocurrency, including Stellar (XLM). In this article, we will examine the concept of whale activity and its impact on star prices.
What are whales?
Whales apply to large and experienced cryptomic merchants that have a significant amount of coins for a longer period of time. They often act outside of traditional market structures, which allows them to accumulate great wealth through trade and speculation. The term "whale" was created in the 1980s as a colloquial for Wall Street whales larger and stronger.
How do stellar prices affect whales?
Whales play a decisive role in the formation of stellar price movements (XLM) due to their massive possession and commercial activities. Here are some key forms of whales that affect XLM prices:
1 If they begin to sell or buy a significant amount of currencies, it can cause movement movements based on the collective opinion of other investors.
Supply and demand : The number of whales that have XLM establishes the tone of supply and demand in the market. When more whales enter the market with a large volume of XLM, a self -service cycle is created that increases prices up or down.
3 This activity can create volatility and affect prices.
Liquidity
: Whales often have a lot of XLM in their wallets or invest in it through several assets. This liquidity contributes to a coin store that can affect prices.
Network effect : Collective purchase and whale sale create a network effect that drives price movements. As more whales enter the market with a large volume of XLM, the accumulated purchase pressure increases.
Examples of whales that affect star prices
To illustrate the effect of whales on star prices, consider the following examples:
- This event caused a massive sale in January 2020 that influenced prices throughout the year.
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March 2021 : The investment of whales to XLM led to an increase in purchase pressure and increased prices by more than 50% in a few hours.
Conclusion
Ballena activity plays a key role in configuration of stars price movements (XLM). The massive sustainable force and commercial activity of these influential investors can create separate cycles that increase prices up or down. To obtain an overview of the whale impact on XLM prices, market feeling, supply and demand, commercial activity, liquidity and the effects of the network must be thoroughly controlled.
When the cryptocurrency space constantly evolves, it is essential that investors and market participants remain informed about the activity of whales and their potential impact on star prices (XLM).