A whale address beginning with 0x8373 has established a short position worth $2.13 million on PUMP tokens using 3x leverage. This activity raises concerns about increased market volatility.
Overview of Whale's Short Position
The address 0x8373 has initiated a short position valued at $2.13 million on PUMP tokens through the HyperLiquid exchange. This involves a 3x leverage and includes 3.776 billion PUMP tokens, indicating substantial market activity.
Impact on Market Sentiment
The whale's actions reflect a broader bearish sentiment in the market. Analysts warn that such substantial pre-ICO shorting could lead to increased selling pressure post-launch. The lack of official statements from the token's founders adds to the speculation and caution among investors.
Volatility Risks for PUMP Token
Currently, PUMP trades at $0.04, with a market cap of $11.31 million, showing a 9.32% drop in the last 24 hours. Over the past 30 days, the token has declined by 23.63%. Experts are concerned about potential regulatory scrutiny given the scale of market activities.
The situation surrounding the short position on PUMP tokens highlights potential risks that investors may face post-ICO. Analysts continue to monitor developments closely.
