In a significant move within the cryptocurrency trading space, a whale identified as 0x670d has deposited 3.37 million USDC into Hyperliquid, a decentralized perpetual futures exchange, to short PEPE with 3x leverage. This event, reported by the on-chain analytics platform Lookonchain on May 29, 2025, at approximately 10:30 AM UTC, highlights the growing activity in meme coin derivatives trading. The transaction, visible on Hyperliquid’s blockchain explorer, indicates a bearish stance on PEPE, a popular meme token that has seen volatile price action in recent months. As of the timestamp of the deposit, PEPE was trading at around 0.000015 USD on major exchanges like Binance and OKX, with a 24-hour trading volume of over 1.2 billion USD across pairs such as PEPE/USDT and PEPE/ETH, according to data from CoinGecko. This whale’s move comes amidst a broader market context where meme coins are experiencing heightened speculative interest, often correlating with risk-on sentiment in both crypto and stock markets. Notably, the S&P 500 and Nasdaq indices recorded gains of 0.5% and 0.7%, respectively, on May 28, 2025, as per Bloomberg data, potentially fueling risk appetite in alternative assets like cryptocurrencies. Such stock market strength often drives retail and institutional flows into high-risk, high-reward assets like PEPE, making this short position a contrarian bet against prevailing sentiment.

The trading implications of this whale’s activity are multifaceted, especially when viewed through a cross-market lens. Shorting PEPE with 3x leverage on Hyperliquid suggests the whale anticipates a sharp decline in PEPE’s price, potentially triggered by overbought conditions or an impending correction in meme coin mania. As of May 29, 2025, at 11:00 AM UTC, PEPE’s market cap stood at approximately 6.3 billion USD, with a 24-hour price increase of 3.2% on Binance’s PEPE/USDT pair, reflecting strong bullish momentum prior to this short. However, the 3.37 million USDC deposit for a leveraged short could exert significant selling pressure if liquidated positions cascade. From a stock market perspective, the positive momentum in tech-heavy indices like Nasdaq, which houses crypto-related stocks such as Coinbase (COIN) and MicroStrategy (MSTR), often correlates with crypto market optimism. On May 28, 2025, Coinbase’s stock price rose by 2.1% to 245.30 USD, signaling institutional confidence in crypto infrastructure, as reported by Yahoo Finance. This whale’s bearish bet on PEPE might indicate a divergence from broader market trends, presenting trading opportunities for contrarian investors to monitor PEPE’s price action closely or explore long positions in correlated meme coins like DOGE, which traded at 0.165 USD with a 24-hour volume of 980 million USD on Binance at the same timestamp.

Diving into technical indicators and volume data, PEPE’s Relative Strength Index (RSI) on the 4-hour chart was at 68 as of May 29, 2025, 12:00 PM UTC, hovering near overbought territory, as per TradingView data. This aligns with the whale’s bearish outlook, suggesting a potential reversal. On-chain metrics from Dune Analytics show PEPE’s transaction volume spiked by 15% over the past 24 hours, reaching 1.8 million transactions by 9:00 AM UTC on May 29, 2025, indicating heightened activity that could precede volatility. Trading volume for PEPE/USDT on Binance surged to 750 million USD in the last 24 hours, a 10% increase from the previous day, reflecting strong retail interest. Cross-market correlation remains evident as Bitcoin (BTC), often a bellwether for altcoins, traded at 67,500 USD with a 24-hour volume of 30 billion USD on Binance at 11:30 AM UTC on May 29, 2025, showing a 1.5% uptick. This BTC strength typically supports altcoin rallies, yet the whale’s short on PEPE challenges this narrative. Institutional flows between stocks and crypto also play a role; recent filings reported by Reuters on May 27, 2025, indicate a 3% uptick in investments into crypto ETFs like Grayscale’s GBTC, correlating with stock market gains. This whale activity could signal a tactical move against retail-driven hype in meme coins, offering traders a chance to capitalize on potential downside in PEPE while monitoring broader stock-crypto sentiment shifts for risk management.

In summary, the interplay between stock market performance and crypto sentiment remains critical. The whale’s leveraged short on PEPE, amidst bullish stock indices and crypto ETF inflows, underscores a nuanced trading environment where cross-market correlations and on-chain data must guide decisions. Traders should watch PEPE’s support levels around 0.000014 USD and resistance at 0.000016 USD on major pairs for breakout or breakdown signals over the next 48 hours following May 29, 2025.