What is Sell Wall?
Let's find out Sell Wall meaning, definition in crypto, what is Sell Wall, and all other detailed facts.
A sell wall is a huge limit order set on the price of a cryptocurrency that sells it when its price reaches a specified value. A sell wall can almost certainly cause the price to drop and it can be placed by anyone, particularly whales or individuals that have high net worth, to influence asset values to their benefit.
Asset prices can be suppressed and forced to trade within a specified range by using sell walls. They work by signaling to other traders that the price can't go any higher without hitting severe resistance.
Whales can repeatedly put and remove sell walls on the order book to manipulate prices. When they do that, it's definitely not with the aim of buying from other traders at similar levels. Mostly, it’s with the intention of tricking others into placing sell orders below the wall, which drives the price movement downward.
A large sell wall suggests that once a specific price is reached, the available supply will quickly grow, lowering both demand and price. Traders then opt not to buy at that price or sell their assets at a cheaper price, allowing whales to profit from shorting possibilities.
The opposite of a sell wall is a buy wall, which causes the growth of the price and provides support. The majority of exchanges provide interactive depth charts that show where the buy and sell walls are.