The Altcoin market entered in red in the third week of August. Market capitalization (total of 3) fell 7% from over $1.1 trillion. This amendment promoted short-term sentiment among derivative traders.
How much liquidation risk does this pose? The liquidation heat map highlights some altcoins facing high exposure.
1. Solana (Sol)
Solana’s seven-day settlement map shows that the short settlement amount (green on the right) controls the long position that begins in the third week of August. However, as Solana benefits from some bullish developments, the short position can face risk.
Specifically, Solana has reviewed a new governance proposal, SIMD-0326, which introduces Alpenglow Consensus Protocol to speed up block finalization.
Additionally, Solana has released a new record. The network processed more than 104,000 transactions per second.
If Sol’s prices recover above $200 this week, they could settle short positions of over $1.1 billion. Meanwhile, if Sol falls to $161, a long position of around $646 million is facing liquidation.
Analysts warn of more concerning scenarios. They predict that Sol could fall below $170 before he bounces above $200 in the same week. This means that both long and short traders can face liquidation risks.
2. Dog coin (doge)
Dogecoin (Doge) is in the spotlight in August due to a terrible build-up of whales and investors.
Additionally, Grayscale filed the US SEC to convert the $2.5 million DogeCoin Trust into a spot ETF. Meanwhile, Polymarket’s Crypto Bettors have been assigned a 70% chance that US regulators will approve Doge ETFs by the end of the year.
Despite this bullish news, Doge’s liquidation map shows that short positions control the accumulated liquidation volume. Traders seem to be hoping for corrections. Doge has won over 30% this month, rising from $0.188 to $0.255.
If Doge falls below $0.20 this week, the long liquidation accumulated could exceed $176 million. Conversely, if Doge returns to $0.26, it will liquidate some $290 million worth of shorts.
Trader’s nipples claimed that it is not the time to be weakened by doge. He predicted that the coin could be approaching a strong rally.
“Dogecoin’s rising triangle sets its medium-term target at $1.8,” traders predicted lateness.
3. Chain Link (Link)
ChainLink won MindShare in August. Investors are excited about the Chain Link Reserve initiative announced earlier this month.
A recent Beincrypto report noted that the whale wallet has added more than 1.1 million links in the past seven days.
However, the same report also revealed that link exchange reserves are rising again. This suggests that investors are beginning to make profits after more than 50% of the rally from the beginning of the month.
Link’s liquidation map appears to be relatively balanced as both bulls and bears have strong incentives.
If Link falls below $22, it could result in a liquidation of around $85 million. If Link increases to $27, the approximately $85 million shorts will face liquidation. The price range is the same, and the amount of liquidation is almost the same.
Meanwhile, market sentiment remains greedy at the time of writing, whilst the index for the Altcoin season stands at 51 points.
Post 3 altcoins, which are at risk of major liquidation in the third week of August, first appeared on Beincrypto.
