Whale Demand Signal

Definition ∞ A whale demand signal indicates significant buying interest from large individual or institutional holders of digital assets, often termed “whales.” This signal is typically observed through substantial on-chain transactions or large order book movements on exchanges. It suggests that major market participants are accumulating an asset, potentially preceding a price increase. Such activity can influence broader market sentiment.
Context ∞ Whale demand signals are closely monitored and reported in crypto news, as they can provide early indications of market shifts. Analysts interpret these signals to gauge the conviction of large investors and anticipate potential price catalysts. Understanding these movements helps retail investors contextualize market behavior and make informed decisions.