Why can the price of an altcoin drop due to just one large investor (the whale)?
Explanation:
High sales volume: Selling a large number of coins in a short period creates significant supply in the market. It's like suddenly putting a large amount of goods up for sale — the price will inevitably drop if there aren't enough buyers.
Lack of liquidity: This means that finding buyers for a large number of coins can be difficult, further exacerbating the price drop.
* **Psychological factor:** The sale by a whale is often perceived by other investors as a signal to sell.
* **Market manipulation:** In some cases, large investors may intentionally manipulate the market by selling large volumes of coins to lower the price and then buy them back at a lower price. This is a speculative practice that can harm small investors.
