Common Methods Used by Whales for Accumulation and Distribution!
1. Price Suppression for Accumulation
Whales intentionally suppress prices to trigger stop-loss orders, then buy cryptocurrencies at low prices, waiting for the market to recover to make a significant profit. This strategy is suitable for low-volume, less-traded coins.
2. High-Level Consolidation
During the first wave of decline, whales do not increase volume but choose to consolidate at high levels, making most investors believe that prices will rise again, allowing them to take over and ultimately achieve the goal of distribution.
3. Price Spread Distribution
Some whales do not pursue short-term profits but instead sell chips at high prices and then buy them back at low prices to reduce the cost of their holdings. This method is reflected on the candlestick chart as long upper shadows at high levels and long lower shadows at low levels.
4. Inverted V-Shaped Distribution
This is the most direct and often unprofitable method of distribution, where whales sell off without regard to cost, causing prices to drop rapidly. As long as the price is above the whale's cost, they will distribute.
These methods demonstrate the various strategies whales use in the cryptocurrency market, including accumulation and distribution, aimed at influencing market prices to achieve their own profits.
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