Definition ∞ Whale buying pressure is the significant upward price influence on a cryptocurrency caused by large-scale purchases from high-net-worth individuals or institutional investors. This term describes the market impact when “whales”—entities holding substantial amounts of a digital asset—execute large buy orders, absorbing available supply and driving up prices. Such concentrated buying activity can signal strong confidence in an asset’s future value or a strategic accumulation phase. It often leads to notable price movements and can influence broader market sentiment.
Context ∞ Analysts and news outlets closely monitor whale buying pressure as a key indicator of market strength and potential price rallies in the cryptocurrency space. Significant whale activity is often tracked through on-chain data, providing insights into the accumulation or distribution patterns of major holders. This metric is a crucial component in technical analysis for predicting short-term and long-term market trends and assessing underlying demand.
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