With the start of the second week of September, Altcoin’s market capitalization has yet to show a decisive breakout move. A total of 3 (excluding Bitcoin and Ethereum) remains at around $1 trillion.
However, the liquidation map reflects bullish expectations from short-term derivative traders. They seem to be betting heavily on an upward scenario in the second week of September. If they are wrong, the scale of the liquidation can be severe. Below are some altcoins that face that risk.
1. XRP
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XRP’s 7-day liquidation map shows a clear imbalance between cumulative long and short liquidation. If XRP declines this week, the advantage holders will suffer a heavier loss.
Several factors encourage traders to bet money and take advantage of bullish scenarios. For example, Wetour, a loyalty partner at Air China, recently revealed plans to enable XRP payments.
Additionally, XRP recorded an 8% rebound in September. It was modest, but it was enough to check for a breakout from the downtrend line in prices. This technical signal has raised expectations for ongoing short-term profits.
However, a recent Beincrypto report highlighted the three red flags of XRP in September, which could derail the rally. These include record XRP reserves on binance, weakening activity in the XRPL ecosystem, and a sharp drop in interest in XRP’s Google trends.
If XRP moves against bullish short-term expectations, long traders could face liquidation of up to $467 million if prices fall below $2.6. Meanwhile, if XRP rises to $3.2, short traders could suffer a $148 million liquidation.
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2. Dog coin (doge)
Like XRP, Dogecoin’s liquidation map shows a major imbalance, reflecting the bullish bets of short-term traders.
Long-term traders committed a ton of capital and utilization this week in Doge Rally, so if prices drop, they will suffer a huge loss.
If Doge falls to $0.20, the cumulative long liquidation could reach $354 million. In contrast, if Doge rises to $2.55, the cumulative short liquidation totals only $80 million.
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The optimism that drives long traders could be attributed to the possibility of the first Doge ETF launch in September. They hope that the news will drive the tokens high this week. On-chain data also supports bullish cases, showing early signs of new influx from retail investors, but still weak.
However, this week’s major macroeconomic events could cause unexpected moves across the Altcoin market, putting long-term traders at risk. For example, the Producer Price Index (PPI) was released on September 10th, followed by the Consumer Price Index (CPI) on September 11th. These announcements often cause sudden volatility of Bitcoin and altcoin in the short term.
3. High lipids (hype)
Hyperliquid has traded for over $50, approaching the all-time high (ATH), and is approaching the setting of a new record this week.
Most technical analysis of the hype circulating on social media platform X is currently lean and bullish.
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In September, plans to launch Hyperliquid’s native Stablecoin, USDH, attracted proposals from Paxos and Frax Finance.
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These developments have led traders to support bullish scenarios. But if they’re wrong and the hype falls to $42, long traders could face a liquidation of over $111 million. Conversely, if the token rises to $56, the short trader’s liquidation totals only $19 million.
The market may not always go against the expectations of long traders and may win this round. However, when Crypto Asset breaks previous highs and sets a new ATH, the pressure often persists to earn profits.
If profits are not secured, traders with long hype could face losses if a sharp dump occurs after an ATH.
