Investor's wiki

Sell Wall

Sell Wall

The term sell wall alludes to an exceptionally large limit sell order or a cumulation of sell orders at one price level on an order book. It is something contrary to a buy wall, which alludes to a large buy order or a cumulation of buy orders at one price level.
While a sell wall can be made by a single entity, it can likewise be made by the sum of various orders placed at a similar price level. Regularly, when the sell wall is made by a single trader, they are alluded to as a "whale." Due to their large holdings, whales are frequently able to influence the price of an asset, and sell walls are one of the instruments they might use to do that.
For instance, assuming a trader places a sell order of 10,000 BTC at $5,000, the order book will show a big sell wall that will in all likelihood keep the price from going over the $5,000 mark. At the end of the day, it would require a strong buying pressure and a lot of money to go through the sell wall and breach the $5,000 resistance.
Be that as it may, sell walls are frequently placed just to scare or cause certain impacts on different traders. This means that those orders are rarely filled completely. As a matter of fact, whales frequently make and eliminate sell walls on various occasions trying to influence the price of an asset. For example, a sell wall might instigate different traders to place their selling orders below the wall, possibly causing a descending movement.
One approach to rapidly take a gander at buy and sell walls is by taking a gander at the depth chart. These charts are given by most trading platforms as a graphical representation of the current order book, with all buying and selling orders that are noticeable inside a certain reach.