#CardanoDebate 📊 Why Do Prices Move? 7 Main Reasons Every Trader Should Know! 💡
Many beginners think that prices rise when people buy, and fall when people sell. Technically that’s correct... but the reality is deeper than that.
What really moves the market is more than just buying and selling. Here are the top 7 reasons for price movements 👇
1️⃣ Supply and Demand Balance
This is the foundation: When buyers are clearly more than sellers - the price rises, and vice versa.
2️⃣ Movement of Big Players
Financial institutions and large funds execute massive orders that can completely change the price direction, even without any news.
3️⃣ Triggering Pending Orders
Like Stop-Loss or Take-Profit or Limit Orders. When the price breaks important levels, these orders trigger and cause sharp rises or drops.
4️⃣ Lack of Liquidity or Interest
Sometimes the market is very quiet, and any large order can suddenly move the price.
5️⃣ Psychology and Trader Expectations
Fear, greed, FOMO, interest rate expectations, and political events - all are psychological factors that strongly affect the market.
6️⃣ Algorithmic Trading and High Frequency Trading (HFT)
Bots operate in fractions of a second. Sometimes the market appears random, but it’s just very fast automated logic.
7️⃣ Order Book Structure
Large orders (Walls) or gaps in the order book can create strong resistances or supports, directly affecting price movement.
🧠 The market is not just candles and lines - it’s a living system that operates with minds, machines, and probabilities.