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What are the strange price fluctuations on the Kanga stock exchange
Question for experts in the world of cryptocurrencies. Kanga Exchange - below are two example charts. The first one is BTC-oPLN, the second is BNB-oPLN. On the charts, I marked candles with exceptionally long lower shadows that caught my attention. First chart: BTC-oPLN, if we believe what the chart shows, on 01.05.2024 you could buy 1 BTC for about 130,000 oPLN at the bottom spike, only to sell it for 230,000 oPLN later that same day. Is this some kind of trick, or did transactions really take place at a rate of, for example, 130,000 oPLN? If they did, then why? Was there such low liquidity on the main cryptocurrency (unbelievable!)? Did someone set their stop loss too low? Similar with the second chart BNB-oPLN on 16.05.2024, there is a downward spike where you could buy 1 BNB for 1600 oPLN and the rate immediately returned to 2300 oPLN. Is it possible to check what transactions took place, what turnover there was at these strangely low, temporary valuations? Do such momentary valuation jumps also appear on other exchanges?
Question for experts in the world of cryptocurrencies. Kanga Exchange - below are two example charts. The first one is BTC-oPLN, the second is BNB-oPLN. On the charts, I marked candles with exceptionally long lower shadows that caught my attention. First chart: BTC-oPLN, if we believe what the chart shows, on 01.05.2024 you could buy 1 BTC for about 130,000 oPLN at the bottom spike, only to sell it for 230,000 oPLN later that same day. Is this some kind of trick, or did transactions really take place at a rate of, for example, 130,000 oPLN? If they did, then why? Was there such low liquidity on the main cryptocurrency (unbelievable!)? Did someone set their stop loss too low? Similar with the second chart BNB-oPLN on 16.05.2024, there is a downward spike where you could buy 1 BNB for 1600 oPLN and the rate immediately returned to 2300 oPLN. Is it possible to check what transactions took place, what turnover there was at these strangely low, temporary valuations? Do such momentary valuation jumps also appear on other exchanges?
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I interpret this as placing market price sell orders of high value, which have bought a significant number of limit sell offers.
I interpret this as placing market price sell orders of high value, which have bought a significant number of limit sell offers.
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There are two options. It's an error on the chart that will be corrected after some time Lack of liquidity in the market with unskilled selling of larger quantities. Kanga is a small exchange and even for PLN, to be honest I am surprised that anyone plays at all. So, answering the question. Yes, probably, theoretically you could have bought BTC for 130,000 PLN if you had a limit order set at a high enough price in the orderbook with matching volume to make a purchase. Because the price, if it was there at all, probably lasted less than a second
There are two options. It's an error on the chart that will be corrected after some time Lack of liquidity in the market with unskilled selling of larger quantities. Kanga is a small exchange and even for PLN, to be honest I am surprised that anyone plays at all. So, answering the question. Yes, probably, theoretically you could have bought BTC for 130,000 PLN if you had a limit order set at a high enough price in the orderbook with matching volume to make a purchase. Because the price, if it was there at all, probably lasted less than a second
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Yes, on other exchanges you will notice that there are different prices.If you notice such a pattern and are quick enough to buy on one exchange, sell on another - this operation is called arbitrage.Because the exchange is nothing more than a place where sellers post offers at the price they want to sell, and buyers post offers at the price they want to buy, and you also have the option of simply "sell/buy at market price"Let's assume you place an order to "sell 10BTC at market price", and in the order book there are orders listed:BUY 1BTC at $69kBUY 5BTC at $68kBUY 2BTC at $67kBUY 2BTC at $30kyou will sell BTC for the equivalent of the weighted average of the above, including the last 2 BTC at $30k which will be recorded on the chart as a drop.
Yes, on other exchanges you will notice that there are different prices.If you notice such a pattern and are quick enough to buy on one exchange, sell on another - this operation is called arbitrage.Because the exchange is nothing more than a place where sellers post offers at the price they want to sell, and buyers post offers at the price they want to buy, and you also have the option of simply "sell/buy at market price"Let's assume you place an order to "sell 10BTC at market price", and in the order book there are orders listed:BUY 1BTC at $69kBUY 5BTC at $68kBUY 2BTC at $67kBUY 2BTC at $30kyou will sell BTC for the equivalent of the weighted average of the above, including the last 2 BTC at $30k which will be recorded on the chart as a drop.
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