Sell Wall

A sell wall is a large limit order placed on a cryptocurrency exchange at a specific price point, signaling significant selling pressure. These large orders create a barrier that can prevent the price of a cryptocurrency from rising beyond the sell wall's level. When market participants see a sell wall, it often influences their trading behavior, as they may anticipate that the price will struggle to move higher due to the strong resistance created by the sell wall. This can lead to price consolidation or even a decline in the asset's value as traders adjust their strategies accordingly.

Sell walls are commonly used by traders and market makers to control price movements or to execute large sales without causing significant market fluctuations. By placing a large sell order at a particular price, the seller can deter buyers from pushing the price higher, as they would need to absorb the entire sell wall before the price can move up. This tactic is often seen in markets with low liquidity, where a single large order can have a considerable impact on price dynamics.