Key Takeaways
- A prominent crypto whale opened a $3.72 million long position on LDO.
- The 5x leveraged trade involves 8.69 million tokens, tracked by Lookonchain.
- The move comes after the same whale took a $194,000 loss on LDO.
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Notorious whale bets $3.7M on LDO after recent $194K loss
An influential crypto whale initiated a $3.72 million long position on Lido DAO (LDO) using 5x leverage, a significant bet placed while the token trades near technical resistance.
The trade, monitored by on-chain platform Lookonchain, involved a purchase of 8.69 million LDO tokens. The whale is a known entity in the market, previously securing a $2.27 million profit in a single day from a trade on ApeCoin (APE), earning the moniker "$APE insider."
This new position follows a recent setback for the trader, who just closed a 10.26 million LDO position at a loss of $194,000. Doubling down on the liquid staking token indicates a strong conviction despite the prior loss and suggests the whale anticipates a near-term price increase for LDO, which is built on Ethereum.
The technical outlook presents a mixed picture that frames the high-risk nature of the trade. As of the transaction, LDO’s price at $0.44 was pushing against its upper Bollinger Band resistance at $0.43, while the Relative Strength Index (RSI) of 70.26 indicated overbought conditions. A pullback toward the 50-period exponential moving average (EMA) at $0.40 could be expected, but a bullish MACD crossover suggests underlying upward momentum remains.
This large, leveraged trade comes as other whale wallets have shown signs of life. In a separate event, a Bitcoin wallet dormant since 2013 recently moved coins worth over $40 million, according to data from Whale Alert. While the motives differ, the activity of large holders is being closely watched as a potential indicator of market direction, especially as Bitcoin trades near $80,700.
Should LDO’s price fall, the first major support level traders are watching is the 50-period EMA at $0.40, with a stronger support zone at the 200-period EMA around $0.37. The whale's high-leverage entry could attract copy traders, potentially increasing buying pressure. However, if a correction occurs, the 5x leverage puts the position at high risk of liquidation, which could add to selling pressure. The outcome of this trade may serve as a significant directional signal for LDO in the coming sessions.
This article is for informational purposes only and does not constitute investment advice.
[1] The "$APE insider" who once made a $2.27 million profit in a single day has again opened a long position on 8.69 million $LDO with 5x leverage.[2] Crypto Market News: AlphaPepe AI DEX Demo Hits 3k Users While Solana Price Prediction Eyes $500[3] A bitcoin whale that went silent in 2013 moves $40 million in BTC[4] APE Insider: Opens $3.72M LDO Long - blockchain.news
