A whale deposited 1.33 million USDC into HyperLiquid to open a significant short position on the $TRUMP token.

A whale has deposited 1.33 million USDC into HyperLiquid to open a significant short position on the $TRUMP token. According to Lookonchain, the trade was executed at an entry price of $14.787 with a liquidation price of $21.538.

The move, spotted at 1:00 PM KST on 28th April, has already drawn attention to its potential impact on $TRUMP’s price volatility and liquidity.

As of noon on 28th April, trading activity around $TRUMP surged across major exchanges. On Binance, the $TRUMP/USDT trading pair recorded a 24-hour volume of 5.1 million USD, a 15% increase from the previous day.

Moreover, TRUMP/BTC and TRUMP/ETH pairs on KuCoin experienced volume spikes of 8% and 12%, respectively. These numbers suggest heightened interest among traders, likely triggered by the whale’s short position.

Historical trends also point to the possibility of a short squeeze if $TRUMP experiences a sudden bullish burst, as seen with an 18% price spike on 15th March, 2025, following a similar situation.

On-chain metrics further underscore the market’s response. Glassnode data, updated at 2:00 PM UTC, revealed a 13% spike in net exchange inflow for $TRUMP, indicating increased selling pressure.

Meanwhile, active addresses holding $TRUMP reached 18,400, a 5% rise, suggesting broader market participation. Open interest for $TRUMP futures on HyperLiquid also climbed by 10% to 12.5 million USD, per CoinGlass, suggesting speculative activity has intensified.

In broader market implications, AI-related tokens like FET and AGIX have seen a surge in trading volumes, with CryptoQuant reporting a 9% increase in activity for these tokens as of 11:30 AM UTC.

Investors appear to be leveraging AI-driven trading platforms such as HyperLiquid for predictive analytics, reflecting a growing intersection between AI tools and cryptocurrency trading. This crossover interest is further highlighted by CoinMarketCap data showing a 3.2% rise in FET’s price to $1.45 by mid-afternoon on 28th April.

From a technical standpoint, $TRUMP’s Relative Strength Index (RSI) on the 4-hour chart stood at 42 as of 1:00 PM UTC, indicating a neutral to slightly oversold condition. The Moving Average Convergence Divergence (MACD) showed a bearish crossover at 1:15 PM UTC, signaling potential downward momentum. These indicators, combined with the whale’s short position, suggest that traders should brace for further price fluctuations in the short term.

The whale’s move has also sparked discussions about market sentiment and trading strategies. The liquidation price of $21.538 leaves the position vulnerable to a sudden rally, which could result in significant losses and a potential short squeeze.

Traders monitoring HyperLiquid’s order book activity and funding rates may find opportunities to capitalize on these developments, whether by aligning with the bearish sentiment or preparing for a potential reversal.

Adding to the complexity, Bloomberg reported that Chinese retailer Shein has already started raising prices in anticipation of new tariffs, with increases of up to 51% on top beauty products. This highlights the ripple effects of macroeconomic factors on token markets, as geopolitical developments and regulatory changes can influence sentiment and liquidity.