Friday, March 29, 2024

Sell wall

by Hideo Nakamura

Sell Wall
A sell wall (also known as a “sell order wall”) is an aggregation of large sell orders placed on a cryptocurrency exchange at a single price point. The presence of a sell wall typically indicates that the market has temporarily reached its resistance level, and can be used to predict future price movements.

When there is an accumulation of sell orders at one particular price, it creates a barrier or “wall” that prevents buyers from pushing prices higher. This in turn causes traders to look for alternative entry points or wait until the sellers become more willing to accept lower bids before entering into any trades.

The size of the sell wall along with its composition, i.e., whether it was created by individual traders or larger investors such as funds and exchanges, will provide further clues about how likely it is that prices will break through the resistance level and move higher again. Sell walls also act as indicators for potential ‘pump-and-dump’ schemes where scammers attempt to artificially inflate prices only to dump their holdings when other traders buy in based on false information/hype generated around certain coins/tokens.

In conclusion, understanding how the market moves and being aware of potential signs like ‘sell walls’ can help you make more informed trading decisions whether you are investing short term or holding onto your cryptocurrencies for longer periods of time

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