Wall for Buying and Selling – What Is It in Cryptocurrencies?

Wall for Buying and Selling – What Is It in Cryptocurrencies?

Table of Contents

Buy and sell walls in cryptocurrency are excellent indicators of a coin's condition. An exchange user can easily find them in the order book by opening the order book, which reflects market depth and the number of current orders.

Buy Wall or Green Wall

Sell Wall or Red Wall

Real and Artificial Walls

Cryptocurrencies — being a speculative market — require distinguishing between the actions of genuine users and whale speculators. A large trader or a group of whales can create a wall of orders to prevent an asset's price from rising or falling. In other cases, they provoke a surge or decline in the value of a specific token.

It is quite possible to determine the origin of a wall:

  • Pay closer attention to the order book; a wall may appear quickly and disappear just as abruptly — whales have influenced the market, made a profit, and then removed the wall;
  • If the wall remains in the order book for an extended period — this indicates that a genuine trader is patiently waiting for their order to be executed.

The ability to recognize an artificial wall is an important skill, as such walls create fear of missing out (FOMO) and lead average traders to financial losses.

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