Crypto Whale Risks Millions on XPL Long, Position Already in Red

A major crypto whale has the market on their watchlist after a new wallet was created and USDC 10.98 million was transferred to take a leveraged position on Hyperliquid. The whale portrays high confidence in XPL as it initiated a long position by trading with 3x leverage.

Details of the Position

On-chain evidence shows that the wallet account 0xb9c…6801e is carrying a hold off the perpetual future position worth 16.17 million XPL or an equivalent of 16.17 million tokens. 

The trade entry level was at 0.57394 USD per XPL, whereas the trading price is now decreased to 0.54185 USD per XPL. This has caused the wallet to slip into a high unrealized loss.

Current Losses and Liquidation Risk

The position of the whale has an unrealized loss of approximately $518, 965 with additional funding cost exceeding more than $9, 200. The liquidation price is at the price of 0.15925 and it is still way low compared to current levels, but a significant risk factor in case XPL continues to fall in price. 

Although the size of the trade is heavy, the whale is still not closing or adjusting the position, which shows confidence in the whale of a rebound.

Market Impact and Speculation

The risky bet showcases the increasing speculation towards XPL, a relatively new crypto asset that has risen in popularity recently. Whales making large-scale leveraged trades always seem to raise controversy since they can generate capital flows that move the sentiment and possibly drain liquidity. 

The market is anxiously observing whether the whale will be doubling down, cutting, or weathering volatility.

Conclusion

This $10.9 million long position in XPL was one of the biggest whale positions conducted over the past few weeks on Hyperliquid. Although the trade is currently at a half-million dollar loss, the trade indicates a high degree of confidence concerning the upside potential of XPL. As leverage increases risk and reward, the crypto community is cautiously watching this high-stakes gamble play out.