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Recently, there's been a lot of talk about order blocks in trading, but many people don't really understand what it means. Let me explain it simply.
An order block is basically a trace left by whales on the chart — a place where large amounts of money were heavily buying or selling. You can think of it as a line on paper that big institutions wipe away. When the price returns to this zone, something usually happens there.
Why are order blocks important? Because the market respects them. If it was an accumulation zone where buying occurred, then when the price comes back, it often bounces upward. On the other hand, if it was a distribution zone where selling took place, the price may be rejected and drop below.
In a practical example — take $XRP. If you're looking for good entry points or expecting a reaction on the chart, order blocks are exactly the zones you should pay attention to. The price very often returns to these places and reacts exactly as we would expect.
My tip: watch where the price made big moves, mark these zones, and wait for it to come back. This is one of the more reliable ways to find good trading opportunities. An order block isn't magic; it's just market logic.