Jakarta, Pintu News – Entering the second half of November, the overall market capitalization of altcoins has dropped below the $1 trillion mark. The ability of altcoins to bounce back amid extremely negative market sentiment has the potential to trigger high volatility and massive liquidation actions on a number of assets.
Which altcoins are at risk, and what specific factors need to be looked at carefully? Details are available below.
According to BeInCrypto, the Ethereum (ETH) liquidation map shows a stark imbalance between the potential liquidation volume of Long and Short positions. Currently, traders are allocating more capital and leverage to Short positions. Consequently, they are at risk of incurring huge losses if the ETH price goes up this week.
Read also: Arthur Hayes Moves Millions—Is a Drop Below $3,000 Next for Ethereum?

If ETH breaks above $3,500, more than $3 billion worth of Short positions could potentially be liquidated. Conversely, if ETH falls below $2,700, the liquidation value of Long positions is estimated to be only around $1.2 billion.
Short players still have reasons to hold their positions. ETH ETF funds recorded outflows of $728.3 million last week. In addition, crypto billionaire Arthur Hayes is also known to have offloaded his ETH holdings recently.
From a technical standpoint, ETH is currently in a key support zone around $3,100-a price level that could potentially trigger a significant recovery.
Sentiment indicators for ETH have also fallen to extreme fear levels. Historically, ETH has often experienced sharp rebounds from similar conditions. As such, the chances of ETH price recovery have a strong foundation and could lead to huge losses for Short traders.
As with ETH, the Solana (SOL) liquidation map also shows a sharp imbalance, with a much larger volume of liquidation of Short positions.
The decline in SOL prices below $150 in November triggered expectations of a further decline towards $100 among short-term traders. Short-selling activity was carried out not only by retail traders, but also by large investors (whales) throughout the month.

However, SOL ETF data shows a more optimistic outlook. Based on data from SoSoValue, SOL ETFs in the US recorded net inflows of more than $12 million on November 14, and a total of more than $46 million over the past week. In contrast, BTC and ETH ETFs experienced net outflows.
This provides a basis for a potential recovery in SOL prices, given that investor demand for the ETF remains strong. The liquidation map shows that if SOL rises to the $156 level, nearly $800 million worth of Short positions could be liquidated.

Conversely, if the SOL price drops to $120 this week, the potential liquidation of long positions is estimated to be around $350 million.
Read also: Whale Buys 150,000 $LINK — Is a Chainlink Price Surge on the Horizon?
In contrast to ETH and SOL, the Zcash (ZEC) liquidation map shows that Long traders bear most of the potential liquidation risk.
Short-term traders appear optimistic that ZEC will continue to print higher highs throughout November. This optimism is supported by the sharp increase in the amount of ZEC locked in the Zcash Shielded Pool this month, as well as the expectations of some analysts who still expect the potential ZEC price to reach $10,000.

However, the price of ZEC repeatedly experienced rejection in the $700 area. This condition raises concerns among analysts about the potential price correction this week.
If a correction occurs and ZEC falls below $600, the liquidation value of Long’s position is expected to exceed $123 million.
In addition, data from Coinglass shows that ZEC’s total open interest hit a record high of $1.38 billion in November. This signifies high leverage exposure, which increases the risk of volatile price movements and large-scale liquidation.

Against this backdrop, a long position on ZEC can indeed generate short-term profits, but without a clear take-profit or stop-loss strategy, the position is highly vulnerable to liquidation pressure.
Liquidation in crypto trading occurs when a trading position is forcibly closed by an exchange because the trader is unable to meet the required safety margin, often when the price moves significantly against the trader’s prediction.
Ethereum (ETH) has the potential to experience a large liquidation of Short positions because if the price of ETH rises above $3,500, there will be a liquidation of more than $3 billion in such positions, caused by the imbalance between the capital allocated to Long and Short positions.
Positive ETF market conditions, with significant net inflows, suggest that there is still strong demand for Solana (SOL), which could support a potential price rebound despite selling pressure in the market.
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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.
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