The term 'whale' 🐳

In cryptocurrency, the term 'whale' refers to an investor who possesses a massive amount of a specific currency. These individuals or institutions have enough wealth to influence the entire market with their decisions. 🐳

How does a whale affect the market?

A whale's impact comes from its ability to significantly move the price of the currency through two main actions:

Massive buying: When a whale decides to buy huge amounts of a currency, this large demand quickly and unexpectedly drives up its price. This increase can attract other investors, adding to the momentum and causing what is known as a 'parabolic rise'.

Massive selling: On the other hand, when a whale decides to sell a large portion of its assets, this enormous supply causes a sharp drop in price. This drop can trigger a panic among small investors, leading them to sell as well, which is referred to as a 'dump'.

For this reason, analysts and major investors closely monitor whale movements. They look for any indicators of their intentions, as their decisions can determine the market direction in moments.

Remember that whale movements are not always negative; sometimes their massive buying is a sign of their confidence in the currency's future, but it remains a force that can shake the market at any time.