The Crimson Binome
Hero
Yes, that is a possible interpretation. The DM can say that the archer remains hidden, even though the PCs have direct line of sight to him, because the PCs didn't specifically say that they're checking the trees for snipers. Or even if they say they're specifically checking the trees for snipers, the DM might say that this requires a check, which they can fail. And the DM can further say that, since the PCs aren't specifically looking at where the archer is hidden, he has advantage on the attack roll, and they aren't alerted to his presence until the arrow hits them (or goes whizzing past). That is a totally valid interpretation.If the archer was hiding in the trees surrounding this clearing then he can be hidden while still being able to see creatures in the clearing. He can shoot from hidden, and that shot will resolve as a shot from hidden; he's shooting through the foliage rather than running into the open clearing and then shooting!
The alternative interpretation is that the archer must break cover in order to gain a clear line to his target, so the PCs automatically see him, and therefore his attack roll is not made with advantage. This interpretation is equally supported.