Largest wallets are still mostly short across the market. Tracking of 70k wallets shows smaller traders are positioned long, but those with the largest profits and accounts are still net short.

https://preview.redd.it/6kx9t3mke84g1.png?3136&format=png&auto=webp&s=eb7fff4bea07ecf32621eed2474ab5c10f5e44b9

I’ve been tracking the positioning of over 70,000 wallets, and the divergence between "Smart Money" and "Retail" is still quite large.

The data comes from Hyperliquid traders, and shows a more bearish picture for the top 1%.

If you look at the Portfolio Size section on the left:

Large $1 mil+ wallets are overwhelmingly red. The largest holders are net short or. This includes majors like ETH, SOL, XRP.

Smaller <$10k wallets are almost entirely green. Smaller traders are longing aggressively, providing the exit liquidity for the larger players.

The All-Time PNL section (on the right) confirms this bias. The traders who are historically the most profitable (The $1M+ PNL column) are largely sitting in short positions or are neutral, while the accounts that are down bad or have low PNL are max-bidding the current price action.

We are seeing a distribution phase. When the crowd is 90% long and the whales are net short, the market usually resolves in the direction of the big money. Unless these whales get squeezed (which is difficult given their capital reserves), we might be looking at significant further correction to flush out retail longs.