2026-01-12 11:27:06

I just saw some shocking on-chain data—there's a major trader at a top exchange holding a 1x long position on LIT, which has already deep underwater with over $1.8 million in losses, while LIT's current price has been stuck at $2.5 for a long time. As someone who analyzes on-chain data daily, this case is worth dissecting to see what it truly reflects behind the scenes.

From an on-chain perspective: this whale isn't using high leverage; it's purely a long position. Yet, they are losing so much—what does that indicate? It shows that at this price level, big funds simply can't hold up, and the market's selling pressure is indeed accumulating. Once retail investors see such negative news, their sentiment can easily collapse, potentially triggering a short-term stampede. This is a signal given by the on-chain fundamentals.

But this situation isn't all bad. Sometimes, the market overreacts, and a whale losing money can even be a sign of a bottom. Based on my years of experience with real trading, the recent crypto market has been extremely volatile, and such events often amplify the fluctuations or even trigger a new round of decline. The problem is, no one can guarantee where the bottom is.

My straightforward advice: don't follow the herd to buy the dip, and don't get scared into selling. The key now is position management—keep a backup plan, wait for clear signs of market recovery before acting. In the short term, continued volatility is most likely, and patience will be smarter than rushing to participate. Keep a close eye on on-chain movements, observe more and operate less—preserving your capital is always the top priority.

LIT-8,21%

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DeFiCaffeinator

· 23h ago

$1.8 million stuck at $2.5. How bold is this whale? Still profitable but could lose this badly, I see a cliff Speaking of which, this is the easiest time to get cut, better wait and see As long as the principal is preserved, there's a chance to turn around. Why rush? On-chain data is so transparent; retail investors who run first always lose the most But no one can predict the bottom; it feels like it needs to drop a bit more to stabilize The bottom-fishing crowd has gone crazy. I’ll keep observing; anyway, missing the rally is better than getting caught in a trap This wave of volatility is really outrageous; it feels like it’s not over yet Wait and hold back from making moves now; this is a test of patience

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ChainDetective

· 23h ago

$1.8 million is just stuck like that, I really see that this time there's no confidence Whales can't even hold on, and they still want retail investors to take the bait, haha Who dares to say they know where the bottom is in this round of volatility? Anyway, I don't believe it Observe more, operate less; it sounds simple but is the hardest to do LIT's current price feels like a trap, let's wait and see Big funds lose so much and still can form a bottom? Then my principal is worth more than the whales, haha Position management is truly the only way to survive When I see this kind of news, retail investors just want to follow the trend and cut losses, a typical leek mentality On-chain signals are right here, but who can be sure when the reversal will happen? Instead of guessing blindly, it's better to hold onto what you have properly

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StablecoinGuardian

· 01-12 11:42

180 million USD, how much patience does this whale have Really can't afford to lose, we need to be cautious It's the same old story, those trying to bottom out are probably caught in a trap On-chain data is a bit alarming, but don't really run away Wait for a confirmed signal before taking action, moving now is just giving it away

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ProofOfNothing

· 01-12 11:38

$1.8 million invested and still no exit, how much patience does this whale have... Nobody understands the market for LIT, even big players can't hold on, and retail investors still dare to buy in? But on the other hand, the more these times test your mentality, the more the retail investors panic. No one can predict where the bottom is, so it's better to reduce your position and lie low. It seems we need to shake a few more waves before a real opportunity appears. Right now, buying anything feels like gambling. If whales are losing money, we just watch and enjoy the show; don't get caught up in the hype. This round of market movement is truly outrageous, even big funds are getting wiped out. What should we do? Honestly, position management really saves lives, it's better than anything else. On-chain data is half true and half false, but you can still see the general direction. Oxygen deprivation, markets without a bottom are the most torturous.

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BrokenDAO

· 01-12 11:37

1.8 million USD invested and still no leverage? That's even more ironic, indicating that this guy is really gambling on LIT to the extreme. Any major investor with a bit of risk awareness wouldn't behave like this... Speaking of which, these kinds of incidents essentially reflect a distortion of the incentive mechanism—why would large funds stubbornly hold at the 2.5 price level? It's nothing more than the initial profit promises made to investors; now, cutting losses is equivalent to default. As a result, the distorted incentives lead to decisions that send a reverse signal to the market. Does the market have a memory? I don't think so, only the repeated weaknesses of human nature.

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