#VIRTUALWhale In the world of digital currencies, whales play a major role in determining market trends, but a new type is emerging known as “virtual whales.” These entities do not necessarily own huge amounts of digital currencies, but they have a similar influence to traditional whales through smart trading, liquidity strategies, and their impact on market sentiment.
How do virtual whales work?
🔹 Using artificial intelligence and algorithmic trading 🤖
Some entities rely on trading robots and technical analysis algorithms to execute huge trades intermittently, creating an effect similar to the movements of traditional whales.
🔹 Control liquidity without owning huge amounts of assets 💧
Some protocols use strategies such as rebalancing in liquidity pools, making it appear as if they control a large portion of the supply.
🔹 Psychological Market Manipulation 🎭
Through large, fake buy/sell orders (Spoofing), these virtual whales can influence investor sentiment and push prices in a certain direction without the need to execute actual trades.
🔹 Leveraging On-Chain Analytics 🔍
These entities monitor the movements of traditional whales and act accordingly, mimicking their influence without the need for huge capital.Impact on the market