A cryptocurrency whale has opened a long position on XPL with 3x leverage, currently making a temporary profit of nearly 900,000 USD.
This whale still needs to recover about 1.9 million USD to break even from the current trading position according to Onchain Lens data on August 24.
MAIN CONTENT
Whales opened a long position on XPL with 3x leverage on August 23.
Unrealized profit currently stands at about 900,000 USD.
To break even, an additional 1.9 million USD needs to be compensated.
Who are the whales and what is their influence in the cryptocurrency market?
The term whale refers to large investors with enormous capital that dominate the cryptocurrency market. Whale transactions often have a strong impact on price volatility. According to the Onchain Lens analysis tool, when whales open high leverage positions like in XPL, this event draws attention due to its potential to significantly move prices.
Data updated as of August 24 shows that the whale is still recording a temporary profit of nearly 900,000 USD but has not broken even due to the risks of using 3x leverage. This demonstrates the importance of monitoring whale behavior to predict market trends.
How does 3x leverage affect the risk and profit of a trade?
3x leverage triples the potential for profit but also triples the level of risk from price volatility. The use of leverage allows the whale to achieve a temporary profit of nearly 900,000 USD, but at the same time needs to recover enough 1.9 million USD to neutralize the position, proving the risk is not small.
With leverage, the position value is amplified, so even a slight adverse price movement can lead to heavy losses. Amateur investors need to carefully consider before applying high leverage to avoid significant capital loss in the highly volatile cryptocurrency market.
How to track whales and apply it in market analysis?
Onchain analysis platforms like Onchain Lens help track large whale trading activity by monitoring wallets and leveraged positions. This information provides deep insights into market sentiment and future price trends.
Using whale data helps investors identify effective entry/exit points and forecast volatility. By analyzing large orders, experts can better understand buying and selling pressure, thereby making appropriate investment decisions in the highly volatile cryptocurrency space.
Frequently Asked Questions
What is a whale in the cryptocurrency market?
Whales are investors holding large amounts of cryptocurrency that can strongly influence price volatility when trading.
What are the pros and cons of 3x leverage?
Increases profit and risk threefold, helping to amplify the position but also easily causing significant losses if the price moves in the opposite direction.
Why monitor whale trading activity?
Whale activity provides important signals about market trends, helping to forecast price volatility.
What is unrealized profit?
Unrealized profit is the profit that has not been closed, which can change according to actual price volatility.
How to break even when using high leverage?
The asset price needs to rise sufficiently to cover the borrowed amount and borrowing costs, while also managing the risk of price volatility.
Source: https://tintucbitcoin.com/ca-voi-lai-900-000-usd-xpl/
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