When whales pump a coin, they follow a calculated strategy to maximize their profits. Their goal is to maximize this formula:
Price x Number of Buyers x Average Purchase Amount of Buyers
Let’s take XRP as an example. A whale could have sold their holdings at $1 and still made billions in profit. However, they pushed the price beyond $3. Why? Because while the number of buyers slightly decreases at higher prices, the price increase compensates for that drop.
The third parameter, the average purchase amount, is where timing becomes crucial. Whales typically unload their positions when the market is green. Why? Because during bullish market conditions:
• New investors enter the market.
• Profitable traders (those who already made gains) have more funds to reinvest.
This creates ideal conditions for whales to sell off their holdings gradually, maximizing the average purchase amount.
Do Whales Operate in Just One Zone?
No, they don’t. Whales are not fortune tellers, so they usually define 3-4 zones to execute their strategy. For larger coins, this number increases due to higher volumes. Conversely, smaller coins might have just 1-2 zones, which is why you’ll often see:
1. A pump in price.
2. Immediate dumping the next day.
This happens because the smaller the coin, the quicker and easier it is to manipulate.
By understanding these dynamics, you’ll be better equipped to navigate the market and spot whale strategies in action.
#XRPHits3 #BTCBackto100K #Whale.Alert $XRP $BTC
