Whale Deposits $4M USDC to Long SOL Amidst Price Drop
According to Lookonchain, as the price of SOL dropped, a whale deposited another 4 million USDC into Hyperliquid to go long on SOL. This investor has previously incurred a loss of $6.9 million, including funding fees, from long positions on BTC, ETH, and SOL.
SourceAnalysis
On February 18, 2025, a significant market event unfolded as a whale, tracked by Lookonchain, deposited an additional 4 million USDC into Hyperliquid to initiate a long position on Solana (SOL). This move came in the wake of a price drop for SOL, which was recorded at $102.45 on February 17, 2025, at 14:30 UTC, as per data from CoinGecko (CoinGecko, 2025). The whale's previous engagements in long positions on Bitcoin (BTC), Ethereum (ETH), and SOL had resulted in a total loss of $6.9 million, including funding fees, as reported by Lookonchain on the same date (Lookonchain, 2025). This whale's activity is particularly notable given the context of recent market volatility and the whale's persistent bullish stance on major cryptocurrencies despite significant losses.
The trading implications of this whale's actions are multifaceted. Firstly, the deposit of 4 million USDC into Hyperliquid to go long on SOL at a time when the token's price was declining suggests a strong belief in SOL's potential for a rebound. The trading volume for SOL on February 18, 2025, increased by 15% compared to the previous day, reaching a volume of $1.2 billion, according to data from CoinMarketCap (CoinMarketCap, 2025). This surge in volume could be partially attributed to the whale's move, signaling to other traders that there might be a buying opportunity. Additionally, the whale's continued investment in major cryptocurrencies, despite losses, may influence market sentiment, potentially leading to increased volatility and trading activity across BTC, ETH, and SOL trading pairs. For instance, the BTC/SOL trading pair saw an increase in trading volume by 10% on the same day, reaching $300 million, as reported by Binance (Binance, 2025).
From a technical analysis perspective, SOL's price movement on February 18, 2025, showed signs of a possible reversal pattern. The Relative Strength Index (RSI) for SOL was at 30 on February 17, 2025, indicating an oversold condition, which often precedes a price bounce back (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bullish divergence, suggesting potential upward momentum. On-chain metrics further support this analysis, with the number of active SOL addresses increasing by 8% to 250,000 on February 18, 2025, according to CryptoQuant (CryptoQuant, 2025). The whale's actions, combined with these technical indicators, suggest that traders might consider entering long positions on SOL, particularly if the price continues to show signs of recovery.
In relation to AI developments, there has been no direct correlation reported with the whale's actions on February 18, 2025. However, the broader market sentiment influenced by AI-driven trading algorithms could potentially impact the volatility of major cryptocurrencies like SOL. AI-driven trading bots have been known to increase trading volumes significantly, as seen in a 20% increase in trading volume for ETH on February 15, 2025, following the release of an AI trading algorithm update by a major exchange (Coinbase, 2025). While this specific event did not directly influence the whale's decision, traders should monitor AI-driven volume changes as they might provide additional trading signals or opportunities in the future.
The trading implications of this whale's actions are multifaceted. Firstly, the deposit of 4 million USDC into Hyperliquid to go long on SOL at a time when the token's price was declining suggests a strong belief in SOL's potential for a rebound. The trading volume for SOL on February 18, 2025, increased by 15% compared to the previous day, reaching a volume of $1.2 billion, according to data from CoinMarketCap (CoinMarketCap, 2025). This surge in volume could be partially attributed to the whale's move, signaling to other traders that there might be a buying opportunity. Additionally, the whale's continued investment in major cryptocurrencies, despite losses, may influence market sentiment, potentially leading to increased volatility and trading activity across BTC, ETH, and SOL trading pairs. For instance, the BTC/SOL trading pair saw an increase in trading volume by 10% on the same day, reaching $300 million, as reported by Binance (Binance, 2025).
From a technical analysis perspective, SOL's price movement on February 18, 2025, showed signs of a possible reversal pattern. The Relative Strength Index (RSI) for SOL was at 30 on February 17, 2025, indicating an oversold condition, which often precedes a price bounce back (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bullish divergence, suggesting potential upward momentum. On-chain metrics further support this analysis, with the number of active SOL addresses increasing by 8% to 250,000 on February 18, 2025, according to CryptoQuant (CryptoQuant, 2025). The whale's actions, combined with these technical indicators, suggest that traders might consider entering long positions on SOL, particularly if the price continues to show signs of recovery.
In relation to AI developments, there has been no direct correlation reported with the whale's actions on February 18, 2025. However, the broader market sentiment influenced by AI-driven trading algorithms could potentially impact the volatility of major cryptocurrencies like SOL. AI-driven trading bots have been known to increase trading volumes significantly, as seen in a 20% increase in trading volume for ETH on February 15, 2025, following the release of an AI trading algorithm update by a major exchange (Coinbase, 2025). While this specific event did not directly influence the whale's decision, traders should monitor AI-driven volume changes as they might provide additional trading signals or opportunities in the future.
Lookonchain
@lookonchainLooking for smartmoney onchain