Strategy Counterparty Liquidation Closes SOL Long Position, Profits $199,000

On January 12, 2026, the whale address 0x94d37 closed a $33.46 million Solana (SOL) long position, netting a $199,000 profit. The whale, known as the 'exchange nemesis,' has previously engaged in counter-trading activities against Bitcoin and other major cryptocurrencies. This latest move follows a broader trend of position reduction by the whale amid a volatile market environment.

Solana has seen a 2% price increase on the day, with inflows into spot ETFs indicating continued institutional interest. The blockchain is also hosting a privacy-focused hackathon, which may influence demand dynamics.

The whale's decision to liquidate the SOL position comes after maintaining long exposure in a range of assets, including Bitcoin and Ethereum. It currently holds an unrealized loss of $626,000, highlighting the complexity of its trading strategy.

Why Did This Happen?

The whale's long positions across 7 major cryptocurrencies fell below average entry prices following a short-term decline in Bitcoin's price. In response, it closed positions in XRP and SOL while gradually reducing other holdings, liquidating over $80 million in a short period. This activity aligns with broader market caution, as seen in ETF outflows and on-chain whale behavior.

The whale's strategy is viewed as a direct counter to MicroStrategy's ongoing accumulation of Bitcoin. This positioning makes the whale a significant actor in the on-chain derivatives space, often influencing market sentiment.

How Did Markets React?

Solana's price has climbed above the 50-day EMA at $136, approaching the $150 level. Technical indicators, including the Supertrend, signal a bullish outlook. However, the price must surpass $145 to sustain its upward momentum, breaking through a key resistance level.

Meanwhile, Bitcoin's price has slipped below $90,000, with ETF outflows and increased profit-taking by traders contributing to the downward pressure. Bitcoin spot ETFs recorded $681 million in outflows last week, pointing to continued institutional caution.

The whale's liquidation of the SOL position suggests a tactical response to short-term volatility. By closing high-risk exposure, it reduces its vulnerability to market swings while maintaining a complex portfolio of leveraged positions.

What Are Analysts Watching Next?

Analysts are closely monitoring whether Solana can maintain its upward trend. A sustained close above $145 would signal a breakout, with the $150 level as the next key target.

Bitcoin's performance is also under scrutiny, particularly as ETF flows show signs of reversing. If ETF inflows resume, it could provide a floor for the price, but continued outflows may trigger further downward movement.

Solana's futures Open Interest (OI) has increased by 4.90% in the last 24 hours, reaching $8.58 billion. The long-to-short ratio of 1.0235 indicates a higher number of long positions, though bearish positions are also seeing significant liquidations.

Market participants are also watching the whale's next moves, given its history of large-position liquidations and reversals. For example, it recently closed a BTC short position for a $1.7 million profit before flipping to long.

The broader market context includes ongoing regulatory uncertainty and ETF approvals. The SEC has delayed decisions on two crypto ETFs and opened public comments on options tied to a Grayscale multi-asset crypto fund. These regulatory developments could influence investor sentiment and trading behavior in the near term.

Implications for Investors

Investors are advised to monitor both Solana's technical outlook and broader market flows. The whale's activity highlights the importance of liquidity management and the need to adjust positions in response to market signals.

Institutional players should also watch ETF flows and on-chain indicators for signs of renewed demand. While ETF inflows into Bitcoin have turned positive again, the overall trend remains mixed, with outflows persisting at times.

Retail investors, particularly those with leveraged positions, should be cautious of volatility and the risk of margin calls. The whale's actions suggest that large players are adapting to market conditions by rebalancing and reducing risk exposure.