Three Things to Know A Hyperliquid trader fresh off an eight-figure loss on ether has opened a large leveraged long on Solana. SOL sits deep in oversold territory, yet momentum and trend read
A Hyperliquid whale who just gave back months of gains on a losing ether trade has placed a fresh leveraged bet on Solana. The trader went long with 10x leverage, entering almost exactly where SOL trades today.
That timing turns one wallet into a live test of the market's floor. Solana has slumped for weeks, and sentiment looks washed out.
A trader on Hyperliquid lost $10.5 million on a single ether long held for about nine days. The loss erased a run of 10 straight winning trades that had earned $6.32 million, on-chain tracker Lookonchain said. The account now sits $4.17 million in the red on closed trades.
The trader then turned to Solana. Data from Hyperbot shows a 10x leveraged long on 383,265 SOL, worth about $26.97 million. The average entry sits near $70.49, and liquidation comes near $36.82.
Market conditions look rough. Traders saw $1.97 billion in liquidations over 24 hours, including $88.23 million in SOL, according to CoinGlass. Spot SOL ETFs shed $138.3 million and have not logged a day of net inflows since October 21.
A climb to $85 would hand the whale about $5.6 million in paper profit. That would cover the earlier deficit. Analyst Michael van de Poppe sees resistance in that zone on any bounce. Crypto Patel said the $70 region must hold, or he would look to buy near $30.
Solana (SOL) daily price with the nearest support (green) and resistance (red). Source: TradingView
Solana traded near $71.36 at last check, up about 3% over the past 24 hours. That leaves the coin less than a dollar above the whale's average entry. The position is barely in profit, and a modest dip would push it underwater.
The bigger picture looks far worse. SOL has dropped about 20% over the past week and roughly 32% over the past month. Sellers have controlled the tape, and the chart shows a steady series of lower highs.
Moving averages explain where the trend stands. A moving average smooths out daily swings by tracking the mean closing price over a set number of days. The 50-day average sits near $95.40. The 200-day average sits just above it, near $96.44.
Both lines hover about 25% above the current price. When a coin trades below both, traders read it as a confirmed downtrend. Those averages now act as a ceiling, and rallies often stall when they reach them.
The two averages also sit unusually close together. The shorter one has fallen almost to the level of the longer one, a sign the recent slide has dragged the medium-term picture down with it. A bearish cross between them would add another warning for buyers.
Today's small bounce barely dents a monthly loss of nearly a third.
RSI, a 0 to 100 gauge of momentum, reads about 19 on the daily timeframe. Anything below 30 counts as oversold, and SOL sits far beneath that line. Sellers have pushed the coin harder and faster than usual.
Readings this deep often come before a relief bounce. Short sellers take profits, and bargain hunters step in. The analyst made a similar point, saying SOL had stretched unusually far below its 21-day moving average. Prices that stray that far from a short-term average tend to snap back toward it.
Oversold does not mean bottomed, though. Momentum is still pointing down, with MACD holding below its signal line. Trend strength readings also show a real trend, and sellers lead it.
That mix leaves room for one more flush. He also warned that SOL could still sweep lower before any recovery starts. For a 10x position, even a brief sweep can sting.
The nearest support sits near $42. That level lies far below the zone that Crypto Patel and the whale both treat as the floor. The data shows no mapped support beneath it at all.
That gap matters for the leveraged long. If buyers lose the current area, little stands in the way of a slide toward that support. From there, the whale's liquidation price sits only a few dollars lower.
Overhead, the first resistance sits near $97.60. That level lies just above both moving averages, so sellers can defend all three in one zone. The next ceiling waits near $104.
A daily close above that first resistance would put SOL back over both averages. Traders would then read the downtrend as broken. Until that happens, any bounce runs into a crowded wall of sellers.
The next three days hinge on whether buyers defend the whale's entry zone.
The oversold reading favors a short bounce, and the whale's timing could pay off over days. The broader trend stays bearish until SOL reclaims both averages.
Flows pose the main risk. ETF money keeps leaving, and leveraged longs crowd the same floor. If that level cracks, forced selling could feed on itself quickly.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
