Trader Eugene Establishes Mid-Level SOL Long Position at $125 Amid Market Volatility

Renowned trader Eugene revealed on March 31 that he opened a mid-level long position on Solana (SOL) at $125. He attributed this move to recent market corrections and the anticipation of macroeconomic events like the April 2 tariff scenarios.

Eugene noted that the recent correction in the crypto market, where prices dropped from $88K to $82K, has reduced downside risks. This shift has created a favorable risk/reward (R/R) scenario, supported by clear stop-loss levels.

Additionally, external factors such as the upcoming April 2 tariff decisions and the influence of stocks like GameStop (GME) and Marathon Digital Holdings (MARA) could serve as catalysts for further market movements.

Market Correction Stabilizes Risks

Eugene highlighted that the crypto market's sharp drop from $88,000 to $82,000 had mitigated some of the inherent risks. This correction was driven by a combination of macroeconomic uncertainties, such as inflation concerns and upcoming tariff policies. Moreover, according to data from CoinGlass, the liquidation of over $300 million in leveraged positions further contributed to stabilizing the market, as over-leveraged traders were flushed out, reducing potential downside risks.

Catalysts: GME and MARA's Influence on the Market

Eugene also cited GameStop (GME) and Marathon Digital Holdings (MARA) as significant catalysts. GameStop recently announced its decision to hold Bitcoin as a reserve asset, a move that has reinvigorated retail investor interest in cryptocurrencies. Meanwhile, according to TheMinerMag, MARA unveiled a $2 billion public stock offering aimed at increasing its Bitcoin holdings, signaling robust institutional interest. These developments have injected fresh optimism into the market, potentially paving the way for upward momentum.

April 2 Tariff Scenarios: A Looming Macro Risk

Another factor influencing Eugene's strategy is the anticipation of "extreme tariff scenarios" set to unfold on April 2. President Trump's proposed reciprocal tariffs could significantly impact global markets. Analysts from Citibank have speculated that these tariffs may lead to heightened volatility across various asset classes, including cryptocurrencies. Potential outcomes range from a market rally, driven by softer-than-expected measures, to a sharp downturn if aggressive tariffs are implemented.

Risk-Reward Ratio: Why Now is an Opportune Moment

Eugene emphasized that the current market setup offers an attractive risk-reward ratio (R/R). In trading, the risk-reward ratio measures the potential profit of a trade relative to its potential loss. For example, a ratio of 1:3 implies a trader is willing to risk $1 to gain $3. With clear stop-loss levels and multiple bullish catalysts, Eugene sees an opportunity to maximize gains while minimizing risks. The upcoming April 2 tariff scenarios add a layer of uncertainty, but Eugene believes the market has largely accounted for these risks, making now an opportune moment for long positions.