($UNI ):
Direction: Long position liquidated
Liquidation amount: $56.7K
Price at liquidation: $16.769
Context:
1. Liquidation Definition:
Occurs when the price of an asset moves against a leveraged position (long or short) to the extent that the trader's collateral is insufficient to maintain the position.
In this case, a long position was liquidated, meaning the trader was betting on the price going up but the price likely fell below their liquidation threshold.
2. Market Impact:
Liquidations can amplify price movements.
A liquidation of $56.7K is moderate and may slightly increase selling pressure if it triggers further liquidations or stop-losses.
3. Price Level:
The price of $16.77 for $UNI could represent a key support/resistance level, significant in market trends and strategies.
Use Case:
Such data is often used by traders, analysts, and investors to:
Identify market trends or volatility.
Gauge the impact of leverage in the market.
Plan entries and exits in trading based on liquidation zones.