New Wallet Goes Long on 20M Dogecoin With 10x Leverage

A newly created crypto wallet has opened a highly leveraged position on Dogecoin, placing a 10x long bet on 20 million DOGE.

Popular blockchain analytics platform Lookonchain drew public attention to the transaction, which was opened late yesterday. The trade quickly sparked discussions due to its massive size, high leverage, and tight liquidation range. Consequently, many traders viewed it as a strong bullish bet despite Dogecoin’s ongoing volatility.

Key Points

• A newly created crypto wallet opened a 10x leveraged long position on Dogecoin.
• The position involves 20 million DOGE valued at approximately $2.25 million.
• With DOGE plunging to $0.11, the position now faces an unrealized loss of about $60.000. 
• The market downturn has triggered roughly $575 million in crypto liquidations, including about $9.55 million tied to leveraged Dogecoin positions. 

New Wallet Opens 10x Leverage on 20M DOGE 

According to Lookonchain data, the newly created wallet opened the leveraged Dogecoin position with 10x leverage on 20 million DOGE valued at approximately $2.25 million.

The trader entered the position at $0.11335. However, the screenshot shared alongside the report showed DOGE trading at $0.11273, leaving the position with an unrealized loss of about $12,410. 

At press time, DOGE extended its decline to $0.11027, widening unrealized losses to roughly $60,724. Despite the pullback, the trader has maintained the 10x leveraged position. Meanwhile, the liquidation price remains fixed at $0.10284. If DOGE falls to that level, the trading platform will automatically close the trade to limit further losses. 

Dogecoin Enthusiasts React 

The trade has triggered widespread reactions across the crypto community, largely because the wallet was newly created and the trader used aggressive leverage. As a result, some DOGE enthusiasts speculate that the trader could be a high-risk “degen” investor or someone anticipating a major bullish catalyst for Dogecoin.

In addition, the liquidation price, sitting roughly 9% below the entry level, has fueled further debate. Many traders argue that the narrow liquidation gap highlights the trader’s strong conviction in a potential upward move. 

Over $570M Leveraged Bets Erased 

Meanwhile, the position comes amid renewed selling pressure in the broader crypto market. Over the past 24 hours, Bitcoin, Ethereum, BNB, and XRP have declined by 2.75%, 2.76%, 3.60%, and 3.72%, respectively. Dogecoin has also suffered in the broader market downturn, dropping 4.24% during the same period. The latest correction has triggered approximately $575 million in crypto liquidations over the past 24 hours, with long positions accounting for $549 million of the total. 

Bitcoin and Ethereum traders recorded liquidations of $188 million and $151 million, respectively. Meanwhile, leveraged Dogecoin positions contributed roughly $9.55 million to the overall liquidation figure.