š Why Whales Are More Active When Price Is Down (And Itās NOT āBuying the Dipā) | Hope this helps
When price starts falling, most people think whales are just buying the dip. I used to think same early on. But thatās not really how it works.
A price drop hits traders mentally first. Confidence breaks, leverage suddenly feels risky, and many traders stop using futures. They move to spot because it feels safer. This shift is important. Spot buying absorbs supply slowly, but it removes liquidation pressure from the market. With less leverage, forced moves disappear and liquidity becomes weak.
This is where big players get active.
Whales donāt use all their money at once. They wait and watch open interest, funding, and longāshort data. When fear is high and leverage is low, the order book gets thin. In that situation, even a small amount of capital can move price.
So they use a small part of funds to push price up a bit. Not to start a real rally, just to test behavior. Price moves, confidence comes back, and traders slowly return to futures. Long positions build fast and leverage comes back.
Once too many longs stack up, the market becomes weak again. At that point whales dont protect price. They exit that early position with profit and let price fall. Liquidations follow, fear returns, and better liquidity appears at lower levels.
This process can repeat more than once. The goal is not pumping price. The goal is building a position with better average entry, without chasing.
Thatās why whale activity often shows during price drops. Itās not dip buying. Itās position building.
Understanding this helped me stop chasing small bounces and fake strength. Real trends donāt need leverage to survive. They start only after the market stops needing traps.
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