With the start of the second week of August, Crypto’s total market capitalization exceeds $4 trillion, officially setting a new all-time high. As trading sentiment improves, bullish expectations deepen the imbalance between pros and cons.
As a result, some altcoins this week could face a major liquidation this week if prices move against the expectations of short-term leveraged traders.
1. Ethereum (eth)
Ethereum’s 7-day settlement map shows a large imbalance between accumulated settlement volumes on the long side and the short side. Traders continue to allocate capital and take advantage of the continued rise in ETH above $4,300.
Coinglass data shows that ETH fell 7% this week, with over $5 billion possible losses if it fell below $4,000. In contrast, if 7% rises to $4,600, then the liquidation of shorts will result in $2 billion.
Some traders are worried that liquidity will flow primarily into ETH, while other altcoins have not seen the same inflow. They believe ETH’s rally could wander the pressure and potentially drop sharply, leading to a long liquidation of as much as $7 billion.
“If Ethereum drops to $3,600, a long position of over $7 billion will be liquidated – a very attractive liquidity pool for exchange… As liquidity mainly flowed into ETH, but other altcoins remain inert, this suggests that ETH can balance crypto market capitalization in response to the potential Bitcoin domination movement,” Investor Marzell said.
2. Esena (Ena)
ENA is one of the most talked about altcoins in August. Thanks to the passage of the Genius Act on July 18, Ecena’s USDE Stabable reached a market capitalization of $10 billion, making it the third largest stubcoin after USDT and USDC.
ENA bullish sentiment has skyrocketed, pushing prices in August from $0.50 to more than $0.80. A recent Beincrypto report shows that whales still accumulate ENA, and the liquidation map reflects traders’ expectations for further short-term profits.
ENA’s seven-day liquidation map shows that long accumulated liquidation volumes far outweigh the shorts.
If Enna falls into a psychological support level of $0.70 this week, Long could face losses of more than $70 million. Meanwhile, if ENA rises to $0.90, the shorts will lose just $16.5 million.
Some traders believe the ENA can continue to rally at $1.50. However, they warn that tokens could face pressure to make profits in the $0.80-0.90 range.
3. XRP
While many altcoins show a liquidation map imbalance biased towards bullish expectations from short-term traders, XRP presents another picture.
A recent Beincrypto report revealed that Ripple has unlocked XRP 1 billion, causing concerns of downward pressure. The technical signal also suggests that the seller has immediate control.
For perhaps these reasons, XRP’s seven-day liquidation map shows that traders are putting more money in bearish scenarios.
If XRP moves against these bearish bets, the shorts could suffer a huge loss this week.
Specifically, if XRP rises 8% to $3.50, nearly $500 million in shorts will be liquidated. Conversely, when XRP drops by 8% to $3.00, Longs faces a liquidation of around $370 million.
Post 3 altcoins, which are at risk of major liquidation in the second week of August, first appeared on Beincrypto.
