Over the past two months, the market has witnessed several liquidation waves worth more than $1 billion. The transition between late September and early October could result in significant volatility for certain altcoins that are drawing out market liquidity.
This article highlights the risks behind these altcoins and explains why they could face a fierce liquidation on the first day of October.
1. Solana (Sol)
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Solana (Sol) is traded nearly $200. This is a psychologically important level that can shape the outlook for traders next month.
Sol’s seven-day liquidation map balances potential long and short liquidations, suggesting that expectations from both sides remain equally consistent.
If Sol rises from $200 to $230, it will liquidate a short position worth around $1.18 billion. On the other hand, if Sol fails to hold $200 and drops to $186, it could wipe out long positions worth $1.16 billion.
Recent analysis of Beincrypto shows that short-term solder holders are close to break-even. However, the risk of surrender is rising, with SOLs likely falling below $200. If this scenario occurs, long traders could suffer a loss this week.
At such a sensitive level, positive news can cause sudden purchase pressure. In the worst case scenario, long and short traders could face losses if Sol is under $200 before recovering quickly.
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2. Plasma (XPL)
Binance increased the liquidity of Plasma (XPL) in September by including it in the Hodler Airdrop program.
After raising 130% to $1.8 to win $1.4 billion, XPL fell by more than 20% to $1.3. This sharp reversal made XPL the fourth liquidated altcoin in late September, tracking only BTC, ETH and SOL.
XPL’s 7-day liquidation map reveals the imbalance between accumulated long and short liquidation. Short-term volumes dominate, with short-term traders actively shorting their tokens.
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If XPL continues to fall to $1.12, the long liquidation could reach $64.4 million. However, if the token rebounds and spins to $1.69, the short liquidation could total $118 million.
Dune Data shows that this Layer-1 network remains very active, with daily transactions reaching a record 400,000 and daily active users exceeding 10,000. Stablecoin market capitalization of USD₮0 on plasma has also reached a new high of $5 billion.
Technical analysts expect XPL to rebound soon after correction, which could result in losses for short traders.
“Plasma has overtaken base, arbitrum and high lipids on TVL. XPL has easily had the best launch this year.
3. Aster (Aster)
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Aster (Aster) has captured the market attention as the highest-grossing cryptocurrency despite having only a market capitalization of $3 billion.
The rapid success as Dex has driven investors towards the tokens. Despite the recent 20% revision, discussions about Aster remain overwhelmingly positive.
The seven-day liquidation map shows that if Aster rises to $2.22 this week, more than $70 million in shorts will be liquidated. Conversely, if the price drops to $1.59, a long liquidation could reach $65 million.
Strong market sentiment and whale accumulation can cause aster prices to rise. Additionally, the public astor purchases of YouTube star Mrbeast influenced the purchasing behavior of other traders.
Aster short sellers could face significant risks of liquidation.
