Early airdrop token price swings can influence investor choices—quick profits tempt selling, but strong fundamentals may justify holding through volatility.
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Layer 2 refers to secondary protocols built on top of a blockchain (usually Layer 1) to improve scalability, speed, and transaction costs. Layer 2 solutions, like the Lightning Network for Bitcoin or Optimistic Rollups for Ethereum, allow for faster and cheaper transactions by processing them off the main blockchain. These solutions help reduce congestion and gas fees on the Layer 1 blockchain, making the network more efficient and scalable without compromising security. Layer 2 is key for widespread adoption, especially in applications like DeFi and NFTs that require high throughput.
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Large buy orders (buy walls) at a specific price level can signal strong support, suggesting that the price may not fall below this point easily. Similarly, large sell orders (sell walls) at higher price levels indicate strong resistance, making it harder for the price to rise. If these large orders are absorbed or moved, it could lead to a breakout or breakdown. For example, if a buy wall is absorbed, it may indicate strong buying pressure, potentially pushing prices higher. Monitoring these order book dynamics helps traders anticipate price movements and key levels of support and resistance.
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