August 28th, 2021 | Updated on March 9th, 2022
Large sell walls indicate that the cryptocurrency is being liquidated quickly, and they’re often a negative indication of a coin’s health. A big sell wall means that traders plan to get rid of a large holding of a coin. When this occurs, traders will sell their holdings for the best available bid, which may be quite low.
A sell wall is then when there are large blocks of sell orders for a coin set at a certain price. The wall is meant to work to prevent sell orders from being executed at a higher price than the limit of the wall.
This causes downward price pressure on the cryptocurrency, so the coin is valued at a lower price. Large walls, therefore, have the effect of slowing or stagnating the growth of a coin in the short term.