After three consecutive weeks of green candles, Altcoin’s market capitalization (total of 3) began in red in the last week of August. This week’s mixing and bullish signals will be important this week in shaping the market direction for the rest of this week.
In this context, some altcoins have seen a surge in open interest, increasing the risk of large-scale liquidation.
1. Ethereum (eth)
According to Coinglass, Ethereum recently set the total amount of unresolved contracts, the total amount of unresolved contracts.
For now, that figure remains at nearly $69.8 billion. This reflects the strength of Ethereum’s derivatives market, where traders bet on capital and take advantage of short-term price movements.
At the same time, High OI warns that ETH could face increased volatility next week.
The 7-day settlement map of ETH shows that the long position (red on the left) exceeds the slightly short position (blue on the right).
This imbalance is attributed to accumulation activity by key players that promoted positive emotions. More traders are betting on upside scenarios, but if they’re wrong, the loss can be greater.
If ETH continues to gather and exceeds $5,100 this week, a short liquidation could total up to $4.1 billion. However, if prices fall below $4,100, contrary to bullish expectations, a long liquidation could approach $6 billion.
Recent Beincrypto analysis reveals that older ETH holdings have been moved. Additionally, Balidator queue data shows that over 846,000 ETHs are waiting for staking and could return to the market.
These factors have caused negative side movements this week, putting long positions at risk.
2. Dog coin (doge)
Doge’s recent analysis suggests that meme coins form large symmetrical triangular patterns. The final week of August marks key points as prices approach the triangle vertex, and breakouts see the following trends:
Crypto analyst Kaleo predicts Doge could soon be upward this week.
“The quick move will go back from here to the $0.40-$0.50 range. Now it’s time,” predicted Kaleo.
This outlook is consistent with many investors’ expectations, and is predicting the Altcoin season next month. If Doge exceeds $0.25 this week, a short liquidation could exceed $200 million.
Conversely, if Doge falls below $0.20, a long liquidation could exceed $170 million.
Currently, the sum of the short liquidation amounts exceeds the long liquidation amounts. Doge’s 6% pullback on August 25th appears to have weakened previous bullish feelings.
3. High lipids (hype)
Hyperliquid’s (hype) liquidation map shows a clear imbalance, with long liquidation far surpassing shorts.
If the hype drops to $39 this week, we could liquidate a long position of nearly $80 million. Meanwhile, a breakout over $50 could liquidate a shorts of around $24 million.
This suggests that many traders are betting on the continued benefits due to the hype. Bitmex founder Arthur Hayes predicts a price increase of 126 times.
Meanwhile, a new report from Syncracy highlights a surge in Bitcoin spot trading with high lipids, surpassing volumes in major exchanges.
“Just right now, Hyperliquid’s BTC spot has 24 hours more than Coinbase and Bybit combined,” said Ryan Watkins, co-founder of Syncracy Capital.
These factors remain so distorted by traders towards bullish bets on hype, creating a strong imbalance in their liquidation maps.
Post 3 altcoins, which are at risk of massive liquidation in the last week of August, first appeared on Beincrypto.
