Reading Whale Activity: How to Interpret Market Sentiment
Whale data can signal potential market turns. When a large majority of whales are long at much lower average entry prices, it suggests strong underlying momentum—but also risk of profit-taking. If the price rises further, these whales may start selling to secure gains, causing a pullback.
Conversely, whales in loss at higher entries might indicate resistance zones. If the "in loss" group grows while the price stalls, it could mean weakening bullish momentum.
Key metrics to watch:
· Long/Short Ratio: Extremely high ratios (like 495% here) can signal over-optimism.
· Avg Entry Price vs. Current Price: Whales in profit may exit; whales in loss may hold or average down.
· Unrealized PnL: Large paper profits increase sell pressure risk.
Use whale data as context, not a standalone signal. Combine it with technical levels and volume for better timing.
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