Sell Wall

The large blocks of sell orders at a particular price give rise to what is called a sell wall in the crypto space. The wall is generated to prevent the sell orders from executing themselves at a higher price than the price that has already been set. This leads to downward pressure on the price of a given crypto asset.

Depending on the way a crypto transaction is carried out, the concept of buy wall and sell wall emerges. High-net worth individuals such as crypto whales are the one who manipulate the market by creating sell walls. Sell walls are usually indicators of someone, usually a whale, ready to sell a huge amount of the crypto asset or coin. This leads to a huge supply in the asset, causing inexperienced traders to conduct a panic sale at prices that are slightly below this wall. The most common use of creating such sell walls is to manipulate the market to their advantage.

Sell walls often lead to the selling of positions by day traders or retail traders. However, the outcome of such situations depends highly on the the mindset of traders with which they have started investing. Sell walls are of least significance to long-term investors since they are capable of disrupting the market stability only for a short duration of time. A sell order that has been present on the order book for a long time indicates that the seller might want to exchange the coins with another asset or maybe fiat currency. Examining such orders can help the traders to evaluate their reaction to the wall.