A whale trap in the cryptocurrency market refers to a tactic used by large holders of cryptocurrency (often called "whales") to manipulate the market and take advantage of smaller traders. Here's how it typically works:

1. **Whales Sell Off Large Amounts**: Whales sell a significant portion of their holdings in a short period, causing the price to drop sharply.

2. **Panic Selling**: Seeing the sudden price drop, smaller traders panic and start selling their holdings, further driving the price down.

3. **Whales Buy Back**: Once the price has dropped significantly, whales buy back their holdings (and often more), benefiting from the lower price.

The goal is to create panic and induce selling pressure, allowing the whales to increase their holdings at a lower cost. This strategy relies on the psychological impact on smaller traders who react to the sudden price movements.