A notable trend in the cryptocurrency market reveals that major players, often referred to as "whales," are actively positioning themselves for a potential downturn. These significant investors are opening substantial short positions across various prominent digital assets, signaling a collective bearish sentiment despite recent market recoveries.
Whale's Bearish Bet on Dogecoin
One prominent whale, identified as 0x9eec9, who previously saw considerable success on Hyperliquid, has amassed an alarming $98 million in active short positions across several cryptocurrencies, including Ethereum, XRP, PEPE, Aster, and particularly Dogecoin. Among these, a massive $32 million short on Dogecoin stands out, suggesting either strong conviction or privileged insight into upcoming market movements. Dogecoin’s recent performance indeed reflects this uncertainty, failing to hold crucial resistance levels around $0.22-$0.23 after a modest recovery and stalling below its 200-day EMA. Technical analysis points to a potential reversion to the $0.16 accumulation level if current support at $0.19 falters, aligning with the whale's likely bet on another liquidity sweep.
Broader Market Caution from Smart Money
The bearish sentiment extends beyond Dogecoin, with another significant entity, whale 0x9263, initiating $84 million in short positions on major cryptocurrencies like Solana and Bitcoin. Combined, these coordinated movements from influential traders represent some of the largest bearish allocations currently visible on the blockchain. This collective action from "smart money" suggests a lack of confidence in the sustainability of recent price bounces, indicating that these large investors are either hedging against broader market risks or anticipate the continuation of the current correction phase. Their substantial positions serve as a potential warning sign that the next phase of the market correction may still be ongoing.
