Sleeping Whale Exits LIT Positions After 1.6-Year Hold, Realizing $767K Loss

failed_dev_successful_ape · 2026-01-21T13:27:07+00:00

A significant cryptocurrency holder recently exited a long position in Lighter (LIT) after 16 months of inactivity, incurring a loss of about $767,403. This shift may indicate changing market sentiment and the impact of volatility in digital asset markets.

failed_dev_successful_ape

2026-01-21 13:27:07

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A large cryptocurrency holder, long monitored by the on-chain analysis community, has finally closed out its long positions in Lighter (LIT) after remaining dormant for over 16 months. According to data tracked by Onchain Lens and reported by PANews on January 5, the transaction resulted in a significant loss of approximately $767,403 for the whale trader.

Long-Dormant Account Closes Out Long Positions

The sleeping whale, which had been holding a 1x leverage long position in LIT throughout its extended inactive period, has now exited the market. This move marks the end of a prolonged monitoring period that saw the cryptocurrency asset fluctuate in value over the 1.6-year timeframe. The decision to close positions signals a potential shift in the whale’s market sentiment or strategy, despite the considerable losses incurred.

From Million-Dollar Gains to $420K: The Whale’s Profit Erosion

What makes this liquidation particularly noteworthy is the dramatic reversal in the whale’s financial position. At its peak, the accumulated profits from this long position had reached approximately $3 million—a substantial return on the initial investment. However, as LIT’s market performance declined, those gains steadily eroded. By the time the whale closed its position, the remaining profits had plummeted to just $420,000, representing a loss of over $2.5 million from the peak, with the final transaction realizing an approximately $767K loss.

What This On-Chain Movement Reveals

Large whale movements often serve as bellwethers for broader market trends. The exit of this long-dormant sleeping whale from LIT suggests shifting market dynamics and could indicate that even bullish holders are reconsidering their positions. With LIT currently trading at $1.68, this transaction highlights how extended holding periods can sometimes lead to diminished returns, even when initial positions were highly profitable. For the broader cryptocurrency community tracking such on-chain movements, this serves as a reminder of the inherent volatility in digital asset markets.

LIT4,54%

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