Whale activity and its impact on Stellar prices (XLM)
The world of cryptocurrency was dominated by a small group of people called “whales”, which have a significant part of the total supply of the market. These powerful investors have a deep impact on the price of preferred cryptocurrencies, including Stellar (XLM). In this article, we will examine the concept of a whale activity and its impact on star prices.
What are whales?
Whales refer to large and experienced cryptocurrency traders who have significant amounts of coins for a long time. They often operate outside traditional market structures, enabling them to accumulate huge wealth through trade and speculation. The term “whale” was created in the 1980s as colloquial for the largest and most powerful whales on Wall Street.
How do whales affect star prices?
Whales play a key role in shaping price movements (XLM) due to their mass holding strength and commercial activity. Here are some key ways in which whales affect XLM prices:
- market moods : whales often contain large amounts of XLM that can affect market moods. If they start selling or buying a significant amount of coin, it can cause price movements based on the collective opinion of other investors.
- supply and demand
: The number of whales containing XLM gives the tone of supply and demand on the market. When more whales enter the market with a lot of XLM, it creates a self -styled cycle that drives prices up or down.
- Trade activity : It is known that whales are active traders, buying or selling huge XLM amounts on high -frequency stock exchanges or with other funds. This activity can cause variability and affect price movements.
- liquidity : whales often contain large amounts of XLM in their portfolios or invest in various assets. This liquidity contributes to the transferability of the coin, which can affect prices.
- Network effect
: The collective power of buying and selling whales creates a network effect that drives price movements. When more whales enter the market with a lot of XLM, the cumulative purchasing pressure increases.
Examples of whale activity affecting star prices
To illustrate the impact of whales on star prices, consider the following examples:
- This event caused a huge sale in January 2020, which influenced prices throughout the year.
- February 2020 : A group of whales supposedly bought XLM worth about $ 20 million on February 4, which causes a significant price increase for several days.
- March 2021 : The whale investment in XLM led to an increase in purchasing pressure, increasing prices by over 50% in a few hours.
Application
The whale activity plays a key role in shaping price movements (XLM). The huge strength of holding and commercial activity of these influential investors can create self -organizing cycles that increase or inheritance prices. To get insight into the impact of whales on XLM prices, you need to closely monitor market moods, supply and demand, commercial activity, liquidity and network effects.
As the cryptocurrency space has evolved, it is necessary for investors and market participants to be informed about the whale activity and its potential impact on Stellar prices (XLM).