Long-term holding outperforms trading for most retail investors due to volatility, fees, and tax complications with frequent trades.
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Whale transactions significantly influence mid-cap tokens because their lower liquidity magnifies large trades. A single whale buying can spark a rapid rally, attracting momentum traders and fueling short-term gains. Conversely, large sell-offs create panic, triggering cascading liquidations. On-chain tracking tools allow retail traders to follow whale wallets, further amplifying reactions. Mid-caps are particularly vulnerable since they lack the liquidity depth of Bitcoin or Ethereum, making them highly sensitive to big movements. This dynamic creates both risks and opportunities: while whale accumulation can be bullish, sudden exits often cause steep declines and highlight the fragility of mid-cap valuations.
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Wallet activity declines in bear markets as retail exits. Remaining active wallets are often long-term holders or institutional players with higher resilience.
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