Whales play a crucial role in market liquidity, price discovery, and trend formation. Their large orders can create bullish or bearish momentum, impacting short-term price action. Many whales strategically distribute or accumulate assets over time to avoid drawing attention, which can influence market sentiment. Traders and analysts monitor whale wallets and exchange movements to predict potential price shifts. Additionally, whale activity can impact order book depth, causing price slippage when executing large trades in low-liquidity markets.
