Definition ∞ Large holder selling refers to the disposal of significant quantities of a digital asset by entities possessing substantial holdings. These large holders, often called “whales,” can significantly influence market prices due to the sheer volume of their transactions. Their selling activity can signal a shift in market sentiment, potentially leading to price declines or increased volatility as other investors react. Analyzing these movements provides insights into the conviction levels of major market participants.
Context ∞ Large holder selling is a closely watched metric in cryptocurrency news and on-chain analysis, as it can precede or exacerbate market downturns. Analysts monitor whale wallet movements and exchange inflows to detect potential selling pressure. Understanding the behavior of these major participants is critical for assessing market health and predicting short-term price action.