The Whale Activity and its impact on Stars (XLM) prices

The world of cryptocurrency was dominated by a small group known as “whales”, who hold a large part of the market. These huge investors have a profound effect on the prices of the preferred cryptocurrencies, including Stellar (XLM). In this article, we examine the concept of whale activity and its impact on star prices.

What are the whales?

The whales refer to large and experienced cryptocurrencies who own a significant amount of coins for a longer period of time. They often work outside of traditional market structures, allowing them to accumulate huge wealth through trade and speculation. The term “whale” dates back to the 1980s as the largest and strongest whales of Wall Street.

How do whales affect star prices?

The whales play a decisive role in the creation of the stars (XLM) price movements due to their massive ownership and trading activities. Here are some key methods with which whales influence XLM prices:

• Market Emotions : Whales often hold a large amount of XLM, which can affect market emotions. If you start selling or buy a significant part of the coin, this can trigger price movements based on the collective opinion of other investors.

• Supply and Demand : The number of whales holding XLM determines the sound of supply and demand on the market. When multiple whales enter the market with a large amount of XLM, it creates a self-enhancing cycle that drives prices up or down.

• Commercial Activity : Active merchants are known to buy or sell a huge amount of XLM for high-frequency exchanges or other means. This activity can create volatility and affect price movements.

• Liquidity : Whales often hold a large amount of XLM in their wallets or invest through various tools. This liquidity contributes to the marketability of the coin, which can affect prices.

• Network effect : The collective and selling power of whales creates a network effect that leads price movements. As more and more whales are entering the market with a large amount of XLM, cumulative purchase pressure is increasing.

Examples of Whale Activity that affects Star Prices

To illustrate the effects of whales on star prices, consider the following examples:

1
January 2020 : The largest whale, the so -called “doge”, was accused of manipulating the XLM price with large amounts of trade. In January 2020, this event triggered a huge sales, which influenced prices throughout the year.

• February 2020 : A group of whales allegedly bought about $ 20 million worth of XLM on February 4, which triggered a significant price increase for a few days.

• March 2021 : Whale investment in XLM has led to an increase in purchase pressure and increased prices by more than 50% within hours.

Conclusion

The activity of the whale plays a key role in creating the price movements of the stars (XLM). The enormous maintenance and trading activities of these influential investors can create self-enhancing cycles that lead prices up or down. In order to gain insight into the impact of the whales on the XLM prices, market emotions, supply and demand, trading activity, liquidity and networking should be closely monitored.

As the cryptocurrency area continues to develop, it is essential for investors and market participants to inform the stars (XLM) prices about whale activity and its potential impact.

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