Mass Liquidations Loom: Are These 3 Altcoins About to Crash?

Jakarta, Pintu News – The fourth week of July was a historic moment with the total crypto market capitalization reaching a record high of $4 trillion. Altcoin market capitalization also showed an upward trend towards an all-time high.

In this situation, a number of altcoins popular among short-term traders who use high leverage could potentially experience massive liquidation.

XRP

According to data from Coinglass, XRP (XRP) Open Interest – the total value of open positions in the derivatives market – reached a record high of $10.9 billion in July.

Read also: XRP Set to Skyrocket! Ali Martinez Predicts Shocking Surge to $15 — Massive Gains Ahead!

Interestingly, the Funding Rate turned positive and rose to its highest level since the beginning of the year. A positive Funding Rate occurs when the futures contract price is higher than thespot price, reflecting strong market optimism as the majority of traders expect the price to rise and open long positions.

This has led to an unbalanced XRP liquidation map between long and short positions.

Based on the last 7-day liquidation map, the cumulative total liquidation for long positions is much larger than short positions. If the price of XRP drops to $3 this week, long liquidations could potentially reach almost $1 billion.

These concerns are well-founded. Recently, BeInCrypto reported warning signs of a possible short-term price correction for XRP, including a decline in the number of new investors.

However, a recent report from Kaiko showed that XRP’s 1% market depth reached a new annual high, approaching $10 million on the spot market. This puts XRP ahead of Solana (SOL), BNB (BNB), and ADA, losing only to Ethereum (ETH).

This increase in market depth and liquidity suggests that XRP may be able to recover quickly if its price drops. Even so, rapid and unpredictable price movements can still pose a major risk to derivatives traders, both long and short.

DOGE

Dogecoin (DOGE) attracted high expectations from investors throughout July, especially as Bit Origin planned to raise $500 million to establish a Dogecoin treasury.

In addition, some indicators also hint at a possible return of the meme coin season, as the altcoin season continues.

According to Coinglass data, DOGE’s Funding Rate reached its annual high on July 21, when the price touched $0.28 again. Many short-term traders opened long positions in the hope that the DOGE price would continue to rise.

However, the risk of liquidating long positions increases as more traders use leverage to bet on DOGE price spikes.

Recently, Lookonchain reported that James Wynn, a well-known trader on the Hyperliquid (HYPE) platform, liquidated part of his position – totaling 4.45 million DOGE (approximately $1.15 million) – after closing his long positions.

Currently, DOGE has dropped from its July high of $0.28 to $0.266. Based on the last 7-day liquidation map, if the price of DOGE drops to $0.236 this week, the cumulative total liquidation of long positions could reach $300 million.

Read also: Dogecoin Dips Slightly Today, But Analysts Say a Massive 218% Surge Could Be Coming Soon!

A recent report from BeInCrypto also noted that long-term DOGE holders began withdrawing funds quietly, indicating possible profit-taking.

ADA

Cardano (ADA) set a new record in open interest in July, totaling $1.74 billion. This increase came as the price of ADA rose for five consecutive weeks.

Many analysts remain optimistic(bullish) and predict that the ADA price will soon touch $1. On-chain indicators such as Age Consumed and MVRV Ratio suggest that the upward price trend is likely to continue throughout July.

However, data from the 7-day liquidation map shows two scenarios to watch out for. If the price of ADA reaches $1, then short positions could potentially experience cumulative liquidation of up to $58 million.

Conversely, the downside risk is even greater – if the price drops to $0.78 this week, the liquidation of long positions could reach $120 million.

Is there anything that could trigger an ADA price drop? Possibly. It has been rumored that Cardano co-founder Charles Hoskinson is preparing to release an audit report publicly. This release could affect trader sentiment, depending on the content of the report.

At the time of this report, Open Interest in the overall crypto market continues to rise, breaking the $213 billion mark. The crypto derivatives market is at the peak of its activity.

“In the past 24 hours, a total of 152,419 traders have been liquidated, with the total liquidation value reaching $553.68 million,” Coinglass reported.

Of this amount, over $370 million came from long positions, raising concerns that this trend of large liquidations could continue into the fourth week of July.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. 3 Altcoins at Risk of Major Liquidations This Week. Accessed on July 23, 2025