3 Altcoins with High Liquidation Risk in Early March 2025: Here’s What Analysts Say

Jakarta, Pintu News – The beginning of March 2025 was characterized by significant volatility in the crypto market. New policies from US President Donald Trump, which included plans to include altcoins in the national crypto reserve as well as new tax policies, led to major changes in capital flows. As a result, liquidation volumes surged to as much as $1 billion.

Liquidation maps for several major altcoins show market imbalances. If these conditions persist, there is potential for massive liquidations that could have a wider impact on the crypto market. Here are 3 altcoins that are at high risk of liquidation in the near future.

1. XRP (XRP): Liquidation Risk If It Drops Below $2.00

Ripple is currently trading at around $2.33 (IDR38,431) after experiencing a 20% decline since March 3. The 7-day liquidation map shows that if the price of XRP falls below $2.00 (IDR 32,978), the total liquidation of long positions could exceed $215 million (IDR 3.54 trillion). Another factor affecting XRP prices is the release of 500 million XRP from escrow on March 3, right after Trump’s crypto-related announcement.

In addition, a report from on-chain investigator ZachXBT showed that Ripple co-founder Chris Larsen still holds more than 2.7 billion XRP worth $7.18 billion, with a large movement of funds to the exchange in January 2025. These moves could increase speculation in the market and trigger further selling pressure.

Also Read: Bitcoin Faces New Price Barriers in the Crypto Market: Volatility and Its Impact on Crypto

2. Solana (SOL): Selling Pressure from FTX/Alameda Fund Transfer

Solana also faces a huge liquidation risk. If SOL’s price drops to $120 (IDR 1,978,680), the total liquidation of long positions could exceed $437 million (IDR 7.21 trillion). Currently, SOL is trading at around $136.3 (IDR2,247,497), and a further drop of 11% could trigger an additional wave of liquidations.

One of the factors affecting SOL prices is a report from Lookonchain which revealed that FTX/Alameda-linked wallets have started transferring 3.03 million SOL worth $431 million to Binance. Although the amount sent to Binance so far is only about 24,799 SOL ($3.38 million), speculation that more SOL will be released to the market could increase selling pressure and worsen liquidation.

3. Cardano (ADA): High Volatility Risk

Cardano has different risks compared to XRP and SOL. If the price of ADA rises above $0.90 (€14,840), the total liquidation of short positions could exceed $50 million (€824.45 billion). Currently, ADA is trading at around $0.81 (IDR13,366).

A recent report from Kaiko states that ADA has the lowest market depth among the five cryptocurrencies in the US strategic reserve. With low liquidity, the price of ADA is more susceptible to large swings due to sudden market movements. In the event of a surge in demand or a massive sell-off, ADA’s volatility will likely be higher than other altcoins.

Conclusion

XRP, Solana (SOL), and Cardano (ADA) are three altcoins with high liquidation risk as early as March 2025. XRP could potentially face a major liquidation if it drops below $2.00 (IDR 32,978), while SOL could face selling pressure from a large fund move by FTX/Alameda.

On the other hand, ADA has the highest volatility due to its low liquidity. With market conditions still uncertain, investors need to be cautious in making trading decisions, especially for those who use high leverage.

Also Read: Cardano Price Movement Pattern Shows Positive Trend, This is Analyst’s Explanation! (5/3/25)

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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. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. 3 Altcoins at Risk of Liquidation in Early March. Accessed March 5, 2025.
• Featured Image: Generated by AI