A wallet linked to Justin Sun reportedly triggered one of the largest price spikes in the cryptocurrency market this year, dramatically altering the trading landscape for XPL.
Actions of Justin Sun's Wallet
Hours ago, a wallet associated with Justin Sun deposited $16 million USDC into Hyperliquid. These funds were utilized to purchase 15.2 million XPL tokens, wiping out the entire order book and causing a price surge from $0.60 to $1.80 in mere minutes.
Market Response to Price Surge
The aggressive buying led to massive liquidations on the platform, with over $16.6 million in shorts obliterated. As the price peaked around $1.80, the wallet began offloading positions at $1.55 to $1.60, netting profits between $14 million and $16 million within an hour.
Trader Reactions and XPL's Future
For retail traders, the sudden price swing resulted in considerable losses. Many who attempted to short or ride the rally faced significant consequences. Hours later, XPL had corrected back to around $0.60, raising concerns within the community and reaffirming the lesson about market liquidity and volatility.
The situation surrounding XPL and the actions linked to Justin Sun underscore how unpredictable whale actions can be in the market. Traders must always stay aware of liquidity issues and the risks associated with trading low-volume tokens.
