Whale Signals Bearish Outlook on Solanas $HYPE with Short Position
- A crypto whale placed nine million USDC into HyperLiquid to aggressively short its token, $HYPE.
- $HYPE sees apparently bullish trends, but the whale placed $638K in limit sell orders on the assumption that the price would drop.
- Such institutional-level and strategic moves imply bearish sentiment in Hyperliquid.
A crypto whale just made a move that is generating a lot of buzz. According to Lookonchain, 9 million USDC was deposited into the HyperLiquid exchange by a brand-new wallet. Experts believe that this was not an arbitrary act, but rather a tactical step taken to short against Solanas trending token, $HYPE.
The Short Position Suggests Selling Pressure On The Value Of $HYPE
The idea of shorting a token basically means predicting its price to drop. Here, the whale is anticipating the value of $HYPE to decline. The deposit, as indicated on Lookonchain, is also observed to be immediate, with the whale putting a chain of sell limit orders to benefit from this anticipated decrease.
Source: @Lookonchain
The limit orders, which are used to make the asset sold at a specified price, were between $18.7 and $19 per token. The total value of these short orders amounts to an eye-catching $638,000.
With volumes that span multiple price points, it is believed that the whale thinks theres going to be a lot of downside for the token.
Strategic Transfers Precede Aggressive Short Positions
Data from Lookonchain also indicates how this newly generated wallet was funded from a series of transactions coming from several Coinbase hot wallets. Two batches of transfers were made, the first of which consisted of 5.1 million USDC, and the other was 3.9 million USDC.
Source: X @Lookonchain
When these funds were received, about 3.92 million USDC, was bridged from the Arbitrum layer 2 scaling solution to Hyperliquid. Almost as soon as the wallet was set up, the whale had already placed the short orders.
The trades were placed in batches of between 4,000 and 5,900 HYPE tokens at descending price levels, with a limit sell placed for each trade. With such a layering of these orders, it appeared like the trader was aiming to earn gradually as $HYPEs price slides through each level.
$HYPEs Bullish Momentum Challenged with Whales Contrarian Move
This whale operation on $HYPE, by its scale and speed, implies some form of institutional-level planning and execution. Also, the amount of heavy capital involved is very rare and suggests a bearish sentiment from investor(s) whose resources and insight are significant.
Source: X @Lookonchain
Read more: https://www.tronweekly.com/whale-signals-bearish-outlook-on-hype/
Text source: TronWeekly
