Solana (SOLUSD)

[stockvaper]

Looks like the ole' " Whale Walls order book spoofing" trick used by whales.

Whale Walls


The Whale Wall technique used to be frequently visible in prior Bitcoin cycles, somewhat less prevalent but still happens on shady exchanges. In the old economy, this technique used to be called order book spoofing. It is a tactic where a market participant will place a large set of orders with no intention of ever having executed, the intent is to create the illusion of large demand or supply in the market. Order book spoofing was used in the commodities market in the past and even reputable old economy institutions have been in trouble for executing these techniques. I have seen this in the crypto markets during the cycles of 2013 and 2017 when whales built up large buy and sell walls on the order books of exchanges, when I saw these back then I was inclined to react e.g., I saw 3000 BTC orders which triggered me to sell and it spoofed my analysis back in 2013 catching me off guard. Older, wiser, and more experienced from those days for sure!

What probably occurred was a whale accumulating BTC secretly while markets were hitting sell orders, the sell wall suddenly vanishes as the whale pulls out his order after consummating the act. This can also happen with whales building buy walls to spoof analysis in the other direction making you think there is supported to hold up selling pressures. The triggering of bullish sentiment makes people assume long positions and then liquidation grenades explode. Whale walls and spoofed order books can create exponential profits for whales, as the same people take positions on futures markets too. They profit from volatility in a derivative market by manipulating price discovery in spot markets. This has become a lot easier to catch and mitigate against nowadays given all the data, exchange features, and alerts now available.

The manipulation technique succeeded in driving Bitcoin down from approximately 32K to just under 30K. The newbies panicked and sold but, many of these bitcoins were picked up by smaller retail buyers and more accumulation on-chain continues.

https://www.linkedin.com/pulse/common-crypto-manipulation-techniques-nitin-kumar-