A sell wall is a particularly large-sized order placed on an exchange portal for selling a cryptocurrency the moment it reaches a predefined value. A sell wall is necessary to save the market from a price drop.
Understanding the term
A trader can place a sell stop at any price level, but it is generally a significant size order that could result in an obvious price shift in the market upon execution. For this reason, the people who place a sell wall are all high-net-worth individuals (commonly known as whales in the crypto markets). Whales have a reputation for manipulating the entire Bitcoin-dominated crypto market to gain advantages with the help of teamwork.
Whales use sell walls because they have the ability to suppress crypto asset prices. It is also possible to force asset prices to trade within a specific range by informing others in a whale group that the price would not exceed a certain level unless it cleared a high-tier resistance. A buy wall is the exact opposite of a sell wall that provides support and allows the price of an asset to move upwards.
Sell wall is a situation usually caused by whales in the crypto market or other high-net-worth participants selling a significant position when the price of an asset reaches a certain value.