Recently, I looked into $FHE's on-chain data and found an interesting phenomenon.

A whale account has a short position with an average price of 0.038, but the unrealized profit and loss is only a bit over 700,000 yuan—this data combination suggests two possibilities: either they are stuck at high levels and holding on stubbornly, or they are engaging in spot hedging to earn funding fees. I personally lean towards the latter. Why? By reviewing the historical trends of similar tokens, in such a 5x volatility market, funding rates usually spike wildly, but FHE's rate remains unusually calm.

Let’s do a quick calculation: if it’s a hedging operation, the actual opening position of this batch of shorts should be around 0.05. Based on this logic, a further increase of 20%-30% would roughly hit the ceiling, likely encountering resistance around the previous high of 0.075; in an ideal scenario, reaching 0.1 would already be quite extreme.

Looking at the longs on the other side. The whale’s long position cost is actually around 0.035 (not the 0.039 shown on the surface), which explains why they can have an unrealized profit of 1.35 million dollars. As for those losing positions? Honestly, there shouldn’t be many long positions chasing at around 0.06—though the market cap is still relatively low, it has already multiplied five times from the starting point of 0.012, so chasing higher at this point offers limited value.

What will happen next? Judge for yourselves.