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🔴 Whale Trap in Cryptocurrency Trading

A "whale trap" in cryptocurrency trading refers to a strategy used by large investors (known as "whales") to manipulate the market in their favor. This tactic involves creating a false impression of market activity to deceive smaller traders. Here are a couple of ways it might work:

🔴 Pump and Dump

Whales might buy large amounts of a cryptocurrency to drive up the price, encouraging smaller investors to buy in, fearing they'll miss out on gains. Once the price is sufficiently high, the whales sell off their holdings, causing the price to crash and leaving the smaller investors with losses.

🔴 Fake Sell Walls

Whales might place large sell orders at a particular price point, creating a "sell wall."This can make it seem like there's a lot of selling pressure, causing the price to drop as smaller traders sell off in panic. The whales then cancel their sell orders and buy up the cheaper coins.

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