PUMP is on fire before the Hyperliquid listing! $152 million in funds are betting, should we follow?
The open interest (OI) in the Hyperliquid pre-market for $PUMP has reached $152 million, with a funding rate of -0.0033%. Simply put, a large amount of capital is betting on the price trend after PUMP's listing, but the current bullish sentiment has not yet reached an extreme state.
The open interest (OI) of $152 million indicates that the market's attention is focused on PUMP. This situation usually has two possibilities: one is the presence of undisclosed positive news attracting funds to position themselves early; the other is leveraged traders betting on price increases through high leverage.
However, it is important to note that the pre-market itself has a high level of leverage; the larger the OI, the more volatile the price may be. If the price does not rise as expected after listing, concentrated long positions may lead to a rapid decline when they liquidate.
The funding rate of -0.0033% indicates that the current market is dominated by longs, and shorts need to pay fees to longs. This negative rate suggests that the short-selling strength is weak, but the absolute value of the rate is low, showing that bullish sentiment is only in a tentative stage and has not yet reached the crazy level of 'must rise'. If the rate continues to expand, one should be wary of the risk of a pullback caused by excessive confidence among longs.
Participation requires weighing opportunities against risks. On the opportunity side, if there is indeed substantial positive news after PUMP's listing, high OI may drive the price up quickly, allowing early positioned longs to obtain short-term profits. On the risk side, the pre-market has a high leverage ratio, and the $152 million OI may contain a large amount of fictitious positions; once the price stagnates or turns, it may easily trigger a chain reaction of long liquidations, leading to a price crash.
Operational advice: wait until PUMP is officially listed, observe whether the price stabilizes at key support levels, then test the waters with a small position while setting a stop-loss level of 5%-10%.
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