Three Altcoins on the Brink of Catastrophic Liquidations in July

by

It is a truth universally acknowledged, that a single man in possession of a good fortune must be in want of a wife. However, in the bustling world of cryptocurrency, a single coin in possession of a volatile market must be in want of a liquidation. July 2025, a month that will be remembered for Bitcoin’s triumphant ascent to a new all-time high above $120,000, also saw many a patient Bitcoin holder transformed into a millionaire. 🎉

Yet, amidst the jubilation, July also bore witness to record-setting liquidation losses, with Open Interest (OI) volumes reaching historic highs. While Bitcoin and Ethereum basked in the glory of their gains, several altcoins now stand on the precipice of significant liquidation risks, as price volatility increases. 🌊

1. Solana (SOL)

Data from Coinglass, a source as reliable as Mr. Darcy’s affections, reveals that Solana’s Open Interest in July soared to $7.9 billion, its highest level since January 2025, when SOL reached the dizzying heights of $294. 📈

The liquidation map for SOL, a document as intricate as a Jane Austen plot, shows a clear imbalance between long and short positions. Most traders, ever the optimists, are betting on further short-term price increases, allocating capital and leverage to long positions. 🎯

Alas, should SOL drop below $150, the total accumulated long-side liquidation volume could reach a staggering $1 billion, representing a decline of over 10% from the current price of $167. A fall from grace indeed! 💔

Though Solana flashed a bullish five-year signal, a recent report from BeInCrypto suggests that FTX, in a move as dramatic as a ballroom scandal, unstaked nearly 190,000 SOL, worth around $31 million. This action, taken amid rising creditor pressure, has sparked fears of market impact. 🚨

2. XRP

XRP’s Open Interest, a figure as elusive as Mr. Wickham’s true intentions, hit $7.6 billion as the third week of July approached. This sum is a mere $250 million below its highest OI level in January. 🤔

The liquidation map for XRP, a document as cryptic as a coded letter, also shows short-term traders are confident that the price will continue rising. This is evident from the imbalance between cumulative long and short liquidations. 📊

The data suggests that up to $500 million in long positions could be liquidated if XRP falls below $2.5. Historical price action, as unpredictable as a carriage ride in a thunderstorm, shows XRP often experiences wide daily ranges, with moves of 20% to 30%. 🌪️

Furthermore, recent analysis suggests XRP’s rally may be losing momentum, as some traders, ever the pragmatists, could be preparing to take profits. 🤑

3. Hypeliquid (HYPE)

In July, Hypeliquid (HYPE), a coin as hyped as a debutante’s first ball, set a new all-time high in Open Interest at $2.1 billion. The Long/Short volume ratio, as well as the Long/Short ratio among top accounts on Binance and OKX, exceeds 1, signaling short-term bullish sentiment. 📈

Meanwhile, HYPE’s price has climbed for six consecutive days, hitting a new high of $49.8 today. Traders, ever the enthusiasts, are still aggressively pursuing long positions, which increases liquidation risk if a pullback occurs. 🚀

The liquidation map shows that over $60 million in cumulative long positions could be liquidated if HYPE drops below $43. A fall from grace, indeed! 💔

In July, HYPE’s price closely mirrored Bitcoin’s. With BTC now exceeding $122,000, any correction in Bitcoin could trigger a deeper retracement in HYPE, leading to large-scale liquidations. 🌊

The Crypto Derivatives Market is Hotter Than Ever

According to Coinglass, a source as reliable as a well-kept diary, Bitcoin’s futures trading volume last week was over 10 times its spot trading volume. The Perpetual Futures/Spot Volume Ratio reached 11.5, the highest in history. 📊

Additionally, the total crypto market Open Interest hit a new all-time high of over $187 billion on July 14. Open Interest, a figure as significant as a marriage settlement, represents the total number of outstanding contracts yet to be settled. 📈

It reflects investor participation in both altcoins and Bitcoin at the moment. These figures suggest that traders are engaging more with derivatives than spot markets, despite the bull market. This is a warning sign that major liquidation events may be on the horizon. 🚨

“In the past 24 hours, 127,894 traders were liquidated. Total liquidations reached $732.59 million,” Coinglass reported. A day of reckoning, indeed! 📉

At the time of writing, 24-hour liquidation volumes have already surpassed $700 million, and most losses continue to fall on short positions. A day of mourning for the shorts, it seems. 🕰️

Read More

2025-07-14 13:07