The Altcoin derivatives market in the last week of September shows a sharp imbalance between accumulated total volume and short positions. This imbalance has been wiped out from its market capitalization of over $200 billion, bringing many Altcoins down.
In this context, short-term traders have shown strong bearish feelings as potential short liquidations spike.
1. Ethereum (eth)
Sponsored Sponsors
Ethereum faces the largest potential liquidation volume among altcoins in the final week of September. The seven-day liquidation map reveals that traders are allocating more capital and using it for short positions, pushing Ethereum’s potential liquidation size to billions of dollars.
At the time of writing, ETH prices have fallen by more than 5%, down from over $4,400 to under $4,200.
If ETH rebounds to $4,500 this week, the accumulated short liquidation total could reach $4.5 billion. If positive news helps ETH recover recent losses and rise above $4,900, the short liquidation total could be nearing $10 billion.
Meanwhile, if ETH is classified as an additional $3,560 this week, the total liquidation could reach $900 million.
Traders have solid reasons to increase short exposures. The recent Beincrypto report shows the number of the most profitable ETH addresses ever, but Ethereum whales are beginning to make profits at historic profit levels.
However, lower ETH prices can cause fresh demand. ETH accumulation shows no signs of slowing down. This demand can encourage institutions and businesses to buy and encourage rebounds that can settle short positions.
Sponsored Sponsors
2. Solana (Sol)
Solana ranks second in potential liquidation volume this week.
Today’s decline of over 7% has encouraged overwhelming bearish sentiment among derivative traders. As a result, the overall potential short liquidation has significantly outweighed the long liquidation.
The seven-day liquidation map shows that if Sol rebounds to $250 this week, he could liquidate a short position of over $2.5 billion. Conversely, if Sol falls below $190, he could settle a long position of about $215 million.
Sponsored Sponsors
A few days ago, the SEC approved the Grayscale Digital Large Cap Fund (GDLC), the first multi-asset Crypto ETP, which holds BTC, ETH, XRP, SOL and ADA. The SEC has also approved the general listing criteria for ETFs. These developments will benefit SOL strongly.
If today’s sale fades and these positive catalysts continue to affect the market, Sol’s prices will recover and put a short position at serious risk.
3. AVANTIS (AVNT)
AVNT doesn’t have the potential to liquidate billions like Ethereum and Solana, but its popularity is on this list. According to Coinmarketcap Trending, Avantis is currently attracting market attention.
The interest in AVNT comes from a concurrent list of three major exchanges: Upbit, Bithumb, and Binance. That price surged by more than 600% in September.
Derivative traders continue to bet on a more upward trend, as demonstrated by the potential long liquidation advantage.
Sponsored Sponsors
The liquidation map shows that if AVNT is revised to $1, it can liquidate a long position of around $60 million. Conversely, if AVNT rebounds to $2.6, a short position above $21 million could be liquidated.
Early investors are now making massive profits for altcoins that have brought such explosive benefits. Many people were able to make a profit quickly. On-chain data confirms that AVNT whales have profited more than 700% today. When this profit expands, long positions face significant risks.
The market entered in the last week of September with a massive liquidation loss. A recent Beincrypto report highlighted several reasons for this result.
“In the last 24 hours, 387,148 traders have been liquidated. The total liquidation reached $1.67 billion,” Coinglas reported.
These numbers could continue to rise for the next few days as volatility in late September becomes increasingly unpredictable.
