🟢 Because there are many reasons behind this, the most important of which are liquidity, buying strategies, and the nature of the market itself.
You will understand the topic easily when you read these reasons:
### 1. Gradual Accumulation Strategy
🔹 Whales do not come to buy a large amount all at once to avoid making the price rise suddenly. If they did this, they would have to pay higher prices when they finish buying the amount they want.
🔹 Instead, they divide the purchase into small orders and over long periods so that no one feels their movements easily.
✳️ Example:
If a whale wants to buy $10 million of a certain currency, they might buy $500,000 every day for 20 days instead of buying the whole amount at once.
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### 2. Psychological Impact and Manipulation (Market Manipulation & Psychology)
🔹 Some whales try to make the market feel that the price is stable or even declining, to buy larger quantities at cheaper prices.
🔹 They might temporarily sell small quantities to make small investors lose confidence and sell, allowing whales to buy the quantities they want at a lower price.
✳️ Example:
If a whale wants to buy a currency at $1, but the current price is $1.10, they might sell a small amount to make the price drop to $1, and then start buying large quantities without the price rising quickly.
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### 3. Price Explosion After Accumulation Completion (Post-Accumulation Breakout)
🔹 When the whale finishes accumulating the quantity they want, they stop putting pressure on the price and rely on the natural demand in the market.
🔹 Here, the price starts to rise because the available supply is decreasing, and other investors feel the upward movement and create "FOMO" (Fear of Missing Out) and start buying, causing the price to rise quickly.
✳️ Example:
If a whale bought most of the available supply at $2, after they finish accumulating, the price might rise to $2.50 or $3 due to increased demand and decreased supply.
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### Conclusion:
Whales do not buy all at once to avoid paying high prices, and they do this gradually to control the price. Once they finish accumulating, the price starts to rise due to decreased supply and increased demand.
So if you see the price of a currency like #XRP, for example, stable for a long time, there might be whales buying but hiding. 😉