Key Takeaways:
A widely-followed crypto whale has placed a significant bet against HYPE, opening a $53.23 million short position after taking profits from other major tokens. The moves, tracked on-chain, suggest a bearish turn from a trader with a reported cumulative profit of nearly $37 million.
The trader, identified by on-chain analysis firm Onchain Lens as Loracle.hl (@loraclexyz), closed out profitable long positions in Toncoin (TON), Bitcoin (BTC), and an undisclosed token "CL" for a combined gain of $3.9 million. Simultaneously, the address unwound approximately 96 percent of a long position in Zcash (ZEC) and initiated a 5x leveraged short on HYPE.
The large short position comes as HYPE trades near a key technical level. The token is currently changing hands around $44.09, up about 5.5 percent on the day, according to KuCoin data. The price is situated above the 38.2% Fibonacci retracement level of $41.77, a key support area. A break below this level could signal further downside.
This action by a single large trader, or "whale," could increase selling pressure on HYPE and prompt other market participants to reassess their positions. The trader's history of profitable moves lends weight to the bearish signal, potentially increasing volatility for the token in the near term. The next major resistance for HYPE is near the $47.34 mark, while a failure to hold current support could see a move down towards the $37.27 level.
This article is for informational purposes only and does not constitute investment advice.
