New coin drops 38% in 16 days since launch; whales liquidated $509K and are still in the danger zone

Since its launch on December 30, 2025, LIT has experienced intense volatility within just 16 days. The latest data shows that a whale was partially liquidated on a 1x leveraged long position of this token, incurring a loss of $509K, and still holding the position with the next liquidation price set at $1.49. This event highlights the high-risk characteristics typical of new tokens during their initial launch phase.

Core Data of the Whale Liquidation Event

According to the latest information, the whale’s liquidation details are as follows:

• Position Type: 1x leverage long (non-high leverage)
• Loss this time: $509,000
• Liquidation Type: Partial liquidation (whale still holds part of the position)
• Next liquidation price: $1.49
• Current price: $1.85 (only $0.36 above the next liquidation price)

This means the whale would face full liquidation with approximately a 19% further decline.

Recent Market Performance of LIT Raises Concerns

Since its launch, LIT’s price trend shows clear downward pressure:

The 24-hour trading volume reached $16.25 million, indicating active market participation, but the price continues to fall rapidly.

Risk Factors Unique to New Tokens

Scarcity of Circulating Supply Leading to Price Fragility

LIT’s current circulating supply accounts for only 25% of the total supply (250 million / 1 billion), meaning 75% of tokens are yet to be circulated. This structure may lead to:

• Selling pressure during future unlocks
• Price susceptibility to large buy/sell orders
• Relative liquidity fragility

Market Cap Rank vs. Trading Depth Discrepancy

Although LIT ranks 99th by market cap, as a new token only 16 days since launch, market recognition is limited, and trading depth may be insufficient to handle large positions.

Significance of Whale Behavior as a Reference

A whale being partially liquidated on a 1x leverage (the lowest risk leverage) indicates:

• Even conservative position strategies cannot fully avoid risk
• Market volatility exceeds expectations
• Downward pressure may persist

Future Risk Monitoring

Based on current data, the following points should be watched:

• Whether the price can find support around $1.49; otherwise, chain reactions of liquidations may occur
• Whether large unlock plans will increase selling pressure
• Whether trading volume can be maintained and liquidity is sufficient
• Whether there are substantial developments in the project’s fundamentals

Summary

This whale liquidation event is not isolated but reflects the high volatility characteristic of new tokens. LIT’s 38% decline in 16 days, only 25% circulating supply, and a whale still experiencing liquidation under low leverage all point to a common risk feature: early-stage new tokens often lack sufficient market pricing capacity. For investors, such projects require more cautious risk management strategies. The current liquidation price of $1.49 may serve as an important technical support level and warrants ongoing observation.