On January 8, on-chain analytics revealed that several long-term bullish investors in altcoins are now under pressure. Despite strong conviction, their heavily leveraged positions are facing significant unrealized losses, collectively exceeding $760,000.
Leverage Backfire: Whale Positions Drown in Red
One prominent trader took a 10x leveraged long on 7.68 million FARTCOIN at an average entry of $0.4542, now sitting on a $448,000 paper loss. Another more aggressive bet involved 1.28 billion PUMP tokens, entered with 40x leverage at $0.0025, currently down $319,000 in unrealized value.
Market Warning: Bullish Exuberance May Be Overheating
- Extreme leverage concentrated in meme coins amplifies risk exposure
- Prices have failed to rally, instead entering a correction phase
- Indicates misjudged timing and overconfidence among large holders
This wave of losses highlights the danger of aggressive positioning amid uncertain momentum. As sentiment wavers, these red marks could signal a broader shift in market psychology.