🐋 Whale’s $20M position on $SUI may liquidate, leading to a deeper market slide
A whale’s $20M long position is in jeopardy, as SUI hovers just above liquidation levels. The position may cause a further slide, as SUI goes down from its recent all-time peak.
A whale’s leveraged position on SUI is threatened if the asset dips to $4.56. The whale has already received a warning for borrowing more than the limit, and for being close to the liquidation threshold. The whale deposited sSUI and SUI in two separate pools to borrow USDC and wUSDT.
As of January 8, SUI hovered around $4.60, though with the occasional dip to a lower level. The crypto market moved sideways, as Bitcoin (BTC) and Ethereum (ETH) slid to a lower range, making other coins and tokens more volatile.
SUI recently posted its all-time high at $5.33, leading whales to increase positions. The chain is one of the most active in the past year, attracting a new inflow of traders. SUI rallied along with the rest of the market in the last quarter of 2024.
As a result of SUI’s expansion, the L1 chain acquired a thriving DeFi sector. The whale’s position relies on an ongoing positive price performance, as it was tied to a loan from SUI Lend.
The whale deposited 4.1M SUI, or $19.3M, to borrow $14.4M in stablecoins. If the loan is liquidated, the whale will retain the stablecoins, while SUILend will become a custodian of the loan. The loan is not similar to a centralized long position, as the whale will not face a total loss. Additionally, the price pressure may be smaller, as the tokens are limited to the DeFi app.
SUI has slowed down its rally, with open interest also going down from a recent peak above $800M, down to $676M. The asset is still expected to expand, as reflected by the 70% long positions. However, SUI may continue to contract as those long positions are attacked for liquidation.