A whale made a long bet on Monero (XMR) with a leverage of 4x, predicting the token to hit a price between $475 and $516. The whale made this $14.33 million bet after XMR exhibited exponential price appreciation, rising by 30 percent in two months.
XMR whale opens 4x leverage position with 36,000 XMR
An XMR whale went long on XMR, predicting the price could reach somewhere between $475 and $516. The whale deposited $3.56 million worth of stablecoins (Hyperliquid) and used it as 4x leverage to go long on 36,000 XMR worth $14.33 million.
Pros and cons of leverage positions
With 4x leverage, the whale can control a position worth roughly four times the amount of capital deposited as collateral. In this case, the whale deposited $3.56 million worth of stablecoins as collateral to open a $14.33 million long position in 36,000 XMR.
This means the whale’s potential gains and losses are calculated based on the full $14.33 million position rather than just the $3.56 million deposited. As a result, a 10% increase in XMR’s price would generate approximately $1.43 million in profit, equivalent to around a 40% return on the initial collateral. However, the same leverage also magnifies losses if XMR moves lower.
For example, if XMR falls 10%, the whale would lose approximately $1.43 million on the $14.33 million position. Since the whale deposited $3.56 million as collateral, that loss would wipe out around 40% of the initial collateral, demonstrating how 4x leverage can significantly amplify both gains and losses.
XMR rises from $300 to $400 in two months
The whale going long on XMR could be justified by looking at the charts. The charts show that XMR has appreciated exponentially since June, rising from as low as $300 and nearly hitting $400 with an increment of 30%+ within just a few months. During this exponential rise, the token also crossed above the 200-day moving average, which is considered the bullish signal in the long term.
The bullish overview can be further established by the moving averages. For instance, the 50-day MA is approaching the 200-day MA from below. If by any means these two lines cross, there could be a golden cross, which is another bullish sign. Hence, taking all these factors into account, the XMR whale seems to have taken this massive risk.
