3 Altcoins at High Risk of Liquidation During the Last Week of November

In recent months, billion-dollar liquidation events have become increasingly common, indicating that traders often find themselves unprepared for market volatility. During the final week of November, several altcoins are poised to create similar surprises.

Key Takeaways

XRP, Dogecoin (DOGE), and Tensor (TNSR) face significant liquidation risk this week.
Market dynamics, including ETFs and whale activity, significantly influence these altcoins.
Liquidation pressures exist for both short and long positions, highlighting the volatile nature of the cryptocurrency market.

XRP

XRP's liquidation map for the past week indicates notable risk levels. If XRP reaches $2.32 this week, about $300 million in short positions could be liquidated. Conversely, if it drops to $1.82, approximately $237 million in long positions may be liquidated.

XRP Exchange Liquidation Map. Source: Coinglass

In the closing days of November, short traders might face liquidation for a few reasons. Notably, Grayscale’s XRP ETF is set to launch on the NYSE on November 24. Moreover, US-listed XRP ETFs have seen a total net inflow exceeding $422 million, despite an overall decline in the market. However, reports have emerged showing that XRP whales have shifted from an accumulation phase to significant selling in recent days. This increase in selling pressure could drive XRP lower, resulting in potential liquidation for long positions.

The presence of these mixed signals may lead to losses for both long and short traders, particularly as the derivatives market appears to be gaining momentum once again.

Dogecoin (DOGE)

Like XRP, Grayscale's DOGE ETF is also on schedule for launch on November 24, which is expected to enhance sentiment around this leading meme coin. ETF expert Nate Geraci sees the Grayscale Dogecoin ETF (GDOG) as a significant milestone and strong proof of the regulatory changes that have occurred over the past year.

“Grayscale Dogecoin ETF. First ‘33 Act doge ETF. Some (many) might laugh. But this is a highly symbolic launch. IMO, the best example of a monumental crypto regulatory shift over the past year. By the way, GDOG might already be a top-10 ticker symbol for me,” Geraci stated.

DOGE Exchange Liquidation Map. Source: Coinglass

If the positive momentum drives DOGE above $0.16 this week, total short liquidations could hit $159 million. However, data indicates that whales sold off 7 billion DOGE during the last month. If this trend of selling persists, it could limit DOGE's recovery or even lead to a decline. Should DOGE fall below $0.13, long liquidations could surpass $100 million.

Tensor (TNSR)

Tensor (TNSR) experienced a remarkable surge of over 340% last week, capturing the attention of many traders. However, the price subsequently corrected by nearly 60% from its peak of $0.36. Simon Dedic, founder of Moonrock Capital, expressed concerns regarding the nature of the rally, suggesting it resembled an “insider pump.”

TNSR Exchange Liquidation Map. Source: Coinglass

Neither Tensor nor Coinbase has addressed these claims. Yet other analysts point out that the top 10 wallets together hold around 68% of the total supply, creating a concentration that poses significant risks and amplifies volatility.

Due to these influences, TNSR's price could experience notable fluctuations in the coming days. If it rises to $0.19, short liquidations may approach $6 million. Conversely, if the price drops to $0.11, long liquidations could exceed $5 million.