Trader Uses 20x Leverage for Big Guess on SOL

GasGasGasBro · 2026-02-04T22:13:12+00:00

A cryptocurrency trader has boldly used 20x leverage to buy 10,000 SOL at $127.07, exposing themselves to significant market risk. Currently, SOL trades at $90.73, showing a drawdown, yet the position still holds unrealized gains of $2.91 million. High leverage remains attractive but carries severe liquidation risks.

GasGasGasBro

2026-02-04 22:13:12

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A cryptocurrency trader has made a bold decision by leveraging extreme leverage to position themselves on Solana. According to data from ChainCatcher, the transaction involved purchasing 10,000 units of SOL at an average price of $127.07 using 20x leverage, creating significant market exposure and simultaneously carrying substantial risk.

Bold Trading Strategy Amid Market Volatility

The transaction was executed at 14:21 UTC, marking the implementation of a strategy planned by the trader to capitalize on market momentum. By utilizing 20x leverage, this trader actually only needs a much smaller initial capital to control a position worth millions of dollars. This approach is a clear example of aggressive trading behavior in the cryptocurrency market, where traders seek maximum profit through high margin use.

According to the latest data, Solana (SOL) is currently trading at $90.73, showing a significant decline from the trader’s entry price. A price drop of more than 28% from the entry point indicates that the current position is experiencing a considerable drawdown in market value.

Position Analysis: Potential Gains vs. Real Risks

Although the value has decreased from the entry point, this position shows an unrealized gain of $2.91 million when measured at a certain moment. However, this data must be understood in the context of high leverage, which amplifies the impact of every price movement. At the current price of $90.73, the position is already in floating loss that continues to grow following the market sell-off.

Why High Leverage Remains a Choice for Cryptocurrency Traders

Traders employing high leverage strategies typically focus on mainstream cryptocurrencies like Solana and other popular altcoins with sufficient liquidity. This choice reflects confidence in the project’s fundamentals and volatility that can be exploited for short-term gains. However, this strategy also carries an important warning: with 20x leverage, a price decline of just 5% is enough to wipe out the entire initial capital (liquidation risk), making risk management a critical aspect of trading with extreme leverage.

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