3 Altcoins Face Major Liquidation Risk in the Final Week of March

Extreme fear returned in the final week of March, prompting more aggressive short-selling. However, some altcoins with unique catalysts may pose risks to these short positions.

Traders of Solana ($SOL), Hyperliquid ($HYPE), and Bittensor ($TAO) should pay attention to the risks that could threaten their positions this week.

1. Solana ($SOL)

Solana’s 7-day liquidation map shows a significant imbalance between potential liquidation volumes of long and short positions.

Short positions could face losses of up to $680 million if $SOL rebounds to $96 this week.

$SOL Exchange Liquidation Map. Source: Coinglass">

$SOL Exchange Liquidation Map. Source: Coinglass

What factors could support a $SOL recovery this week? Reports from BeInCrypto highlight at least two key drivers.

• First, exchange flows reversed sharply after March 17. Daily outflows reached 700,000 $SOL. This trend suggests that many investors may be accumulating $SOL during the downturn.
• Second, Solana DEX trading volume surged 103% to $138.4 billion over the past week. This marks the highest level in a year.

These factors indicate that demand for $SOL may be increasing. This could put short positions at risk of liquidation.

2. Hyperliquid ($HYPE)

Similar to $SOL, $HYPE’s liquidation map also shows that potential short liquidations dominate.

If $HYPE rises above $42, short liquidations could exceed $60 million.

$HYPE Exchange Liquidation Map. Source: Coinglass">

$HYPE Exchange Liquidation Map. Source: Coinglass

The escalating tensions between the United States, Israel, and Iran may positively impact demand for $HYPE through the HIP-3 market. This market allows trading of oil, metals, and stock index contracts.

Hyperliquid HIP-3 market data shows approximately $14.39 billion in trading volume over the past 7 days. Open interest stands at around $1.73 billion.

“We believe the next leg for $HYPE depends less on crypto market share and more on HIP-3 opening a 24/7 market for non-crypto assets,” Alea Research stated.

$HYPE’s unique catalyst may allow it to move against the broader negative sentiment in the crypto market. This creates risk for short positions.

3. Bittensor ($TAO)

Bittensor ($TAO) is attracting increasing interest from altcoin investors as they become more selective in portfolio allocation.

A recent report from LunarCrush, a social analytics platform focused on crypto markets, shows that community discussions about $TAO rose 112% over the past 30 days. Mentions reached 3.86 million in just 24 hours.

This surge follows Jensen Huang’s mention of Bittensor in a recent podcast. Grayscale also opened a private placement for its $TAO fund. In addition, $TAO subnets are showing growth in both revenue and community engagement.

If this positive sentiment continues, $TAO’s price could benefit.

$TAO Exchange Liquidation Map. Source: Coinglass">

$TAO Exchange Liquidation Map. Source: Coinglass

The liquidation map shows that if $TAO rebounds above $307, potential short liquidations could reach $27 million.

Short sellers have valid reasons to expect further downside, given rising macroeconomic concerns and geopolitical tensions. However, without proper profit-taking strategies, these unique catalysts could lead to more complex price volatility.

The post 3 Altcoins Face Major Liquidation Risk in the Final Week of March appeared first on BeInCrypto.