GMX Crypto Whale In Danger Of Huge Liquidation if Ethereum Hits Price of $1,950

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A GMX crypto whale that has been on an ETH shorting spree might be facing huge liquidation soon.

PnL data shows that they are in danger of losing 80% of their funds if the Ethereum price touches the $1950 mark.

Popular crypto Twitter influencer Taiki Maeda made his community aware of this situation via his tweet.

Let's track this $ETH shorter on $GMX together

On-chain positions create a social element to taking/monitoring positions, versus people just posting PnL after winning CEX trades. Never been a big fan of "copy-trade" platforms but might gain more traction If on-chain perps level… https://t.co/5XNds8jOBx

— Taiki Maeda (@TaikiMaeda2) June 23, 2023

Many crypto influencers on Twitter are asking, “why so many shorts” after seeing a chart showing that the GMX whale has shorted ETH 24 times between June 18th to June 22nd alone.

GMX Trader Can’t Stop Shorting

The GMX whale has implemented this strategy of shorting ETH in a way that no one can explain. Many are saying that he is implementing Delta Hedge. And others are countering that argument by saying that it would not be ideal to use GMX to implement this strategy.

What is Delta Hedge?

Delta Hedge is an options trading strategy that a trader implements to reduce or hedge the risk related to the price movements of an underlying asset.

The yellow circles represent the shorting zones

One user has also stated that it is pretty “insane” that the whale has conditioned their orders to add all the way to their liquidity.

As you can see from this data, the liquidity price has been set at $1953. That is the reason many investors are wondering why the whale would take that position.

And some investors are being cheeky about it, saying that GMX bears are adding a margin to their already low position.

Click here to check to monitor the whale’s action by yourself.

GMX Price Analysis

When it comes to GMX, the price of the asset has been stable above the $53 range since last month. The chart shows that mid-June was the only time that the token dropped in the red zones, crashing past the $45 mark.

But a quick rebound has allowed it to move past the $52.98 support. The current candle shows red signs. If GMX falls below its current support, it will try to stay above $50.

Currently, the token’s RSI is around 55 – keeping it a bit in the oversold zone. But GMX’s current stable trend doesn’t make it seem like it will drop any time soon.

Maybe They Know Something We Don’t – Twitter

The whale’s recent actions have started a slew of conspiracy theories, with many saying that the trader knows something that we don’t. While others say that the trader might know too much.

maybe he knows too much

— AIspy🟠 (@Krypt0psy) June 25, 2023

GMX is performing similarly to Ethereum (in a stable state). Ethereum’s current price chart on CoinMarketCap doesn’t show any volatility other than a little morning dip. At press time, it is trading around the $1916 mark.

You can check out our yearly price predictions about Ethereum in our Ethereum price forecast guide.

Which Other Cryptos Whales Are Buying?

While we have highlighted shorter crypto in our article, they are not the only ones making rounds in the market. There are other tokens that users are interested in. Most of them are available as presales.

Presale tokens are favored by those who don’t want to deal with the current volatility of the crypto market. While the recent trends are showing some signs of stability for the tokens we have mentioned, all it would take is one negative news to spread, and the bears might take over.

In such situations, presales allow users to make gains without being subject to the market’s erratic behavior. This is why some of the best presales that whales are interested in include the following:

Wall Street Memes (WSM)

Wall Street Memes is a community-centric asset that leverages memes to grow up in value. Inspired by the Reddit Group Wall Street Bets, Wall Street Memes aims to transform memecoins – a seemingly “useless” asset into a wealth generator.

The token’s appeal has grown since the launch of its presale. And it has already raised more than $11.7 million at press time. The community backing this token has a million followers across multiple social media platforms, and even Elon Musk has interacted with the group.

These factors can fuel it to make it the next 10x crypto of this year.

Thug Life (THUG)

Another token to have been inspired by the memecoin genre and has gained a lot of attention in a short time is Thug Life.

Thug Life is a “baller’s” memecoin inspired by the “Thug Life” mean, representing stoic individuals who got a perfect comeback for everything. That “grind” mentality also permeates across Thug Life’s official website, whose content uses “street talk” to communicate what the project is about.

Thug Life has been able to use this uniqueness to raise more than $180k within three days.

It is one of the top four crypto assets recommended by our resident crypto expert – Jacob Crypto Bury.

Conclusion

While GMX’s whale recent move is heading them toward liquidation, there is a bigger picture that many retail investors aren’t seeing. This is why investors must look for alternative investment opportunities, such as Wall Street Memes and Thug Life.

Both are highly popular memecoin presales that have quickly gained the market’s attention. And if they follow the same trends as other ICOs in the past, early movers might make a 10x return.

Newest Meme Coin ICO - Wall Street Pepe

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