A major Solana whale is mounting a more aggressive bearish pressure on Solana (SOL), growing a very leveraged short position that is now more than $53 million, according to on-chain tracking records. The trader keeps building the position in small steps indicating that the trader is highly convinced that the price of Solana will experience further downturn over the short run.
Continuous Short Increases Recorded in Real Time
Trading data obtained through the trading dashboard illustrates a sequence of incremental back-to-back 25 Solana short positions, carried out at approximately a one-two minute time interval. All the orders are Open Short Increase orders, where the entry price is between 141.11 and 141.52 USDC, and the standard fees are 1.23-1.24 USDC.
There are no long positions in operation in both perpetuals and spot, highlighting a very concentrated bearish position.
20x Leverage Amplifies Market Impact
The leverage used to take the short is 20x, which has greatly amplified the risk and potential profit. Having a total position value of 53,807,809 with a leverage ratio of 3.86x on the dashboard, the whale is maneuvering with the upper limits of high-risk margins.
The ratio of the margin used is 19.31 and the remaining margin is huge at 8.4 million and this shows that the whale can continue to expand the position.
Profit Surges Past $11.5M Floating Gain
The live performance indicators display a floating profit (uPnL) of 11,527,204.33 which is created by average entry price of 172.0663 compared to the existing mark price of 141.37. Such high variance has provided the whale with a phenomenal +434.27% ROE on the position.
Overall trading PnL of the perp and spot accounts reflects a fantastic + $20,001,655.71, making it clear that the whale is not just making money on this active trade but on its overall trading operations.
The trader has a clean track record with a maximum drawdown of 13.50 and a win rate of 100 percent on the weekly performance view of the dashboard which is unusual in a high leverage strategy. This mixture will tend to draw the attention of wider market, and it may impact the sentiment since the traders are responding to the whales aggressive stance.
Solana Market Outlook Turns Cautious
The volume of shorts accumulated over time and the leverage could place Solana under downward pressure particularly where other traders decide to join in or there are panic sales. Nevertheless, the liquidation risk is also associated with the oversized exposure in case of unexpected upside volatility of Solana. The liquidation price of the whale is at present 173.6391, which is not very large but significant, and there is a significant, though not enormous, margin above the existing level.
The aggressive short expansion is persisting and market participants are observing keenly as to whether the whale will continue to scale higher or start locking in profits.
