Who Bet This Big...New Wallet Makes a 'Decisive Move' with 10x Leveraged Long on Dogecoin

▲ Dogecoin (DOGE)/ChatGPT generated image

A newly created cryptocurrency wallet is attracting market attention by opening a 10x leveraged long position on 20 million Dogecoin (DOGE). As the price of Dogecoin falls, this position is accumulating unrealized losses, but investors interpret it as a trade aiming for a strong bullish catalyst, given it's an aggressive bet with the liquidation price only about 9% away.

According to The Crypto Basic on May 16 (local time), blockchain analytics platform Lookonchain reported late the previous day that a newly created wallet had opened a large leveraged position on Dogecoin. The wallet set up a 10x leveraged long position on 20 million DOGE, worth approximately $2.25 million.

The entry price for this position was $0.11335. A screenshot shared by Lookonchain showed Dogecoin trading at $0.11273, incurring an unrealized loss of approximately $12,410. Subsequently, as Dogecoin further dropped to $0.11027, the unrealized loss expanded to approximately $60,724.

However, the trader is maintaining the 10x leveraged position. The liquidation price is fixed at $0.10284, and if Dogecoin falls to this level, the trading platform will automatically close the position to limit further losses. With a gap of only about 9% between the entry price and the liquidation price, the market reacted by calling this trade a short-term bullish bet based on very high conviction.

This trade quickly sparked debate within the Dogecoin community due to the wallet being newly created and the use of high leverage. Some Dogecoin supporters speculated that the trader might be a high-risk speculative investor or someone expecting a strong bullish catalyst for Dogecoin.

Meanwhile, this position emerged amidst a renewed selling pressure across the broader cryptocurrency market. This correction resulted in approximately $575 million in liquidations across the entire crypto market, with long position liquidations amounting to $549 million. Bitcoin and Ethereum liquidations were $188 million and $151 million, respectively, while Dogecoin leveraged position liquidations totaled approximately $9.55 million.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*