Three Altcoins at Risk of Major Liquidations in Early November

As the crypto market begins November with a decline, short-term sentiment among derivatives traders has turned negative. Many are heavily positioned for short bets, which increases the chances of significant short liquidations in the upcoming weeks.

Key Takeaways

The crypto market is experiencing negative sentiment among derivatives traders, particularly leaning towards short positions.
Ethereum (ETH), Aster (ASTER), and Dash (DASH) face high liquidation risks due to dominant short positions.
ETH could see over $4.2 billion in short liquidations if it rebounds to $4,000.
ASTER's price movements are influenced by social media and could lead to significant short liquidations.
Dash continues to gain attention, with a potential risk of $13 million in short positions being liquidated if it reaches $105.

1. Ethereum (ETH)

The liquidation map for Ethereum (ETH) over the past week shows a notable imbalance between the potential for long and short liquidations, with short positions clearly dominating. If Ethereum rebounds to $4,000 this week, over $4.2 billion worth of short positions could be liquidated. A stronger recovery, pushing ETH closer to $4,300, could bring total short liquidations near $8 billion.

ETH Exchange Liquidation Map. Source: Coinglass.

Recent insights from BeInCrypto indicate a bullish divergence, suggesting that ETH may recover this week. Analysts point out that despite the short-term market volatility, Ethereum's network continues to reach new highs in various metrics. These strong fundamentals encourage many investors to accumulate ETH during deep pullbacks. For instance, Ethereum’s application revenue recently hit an all-time high while the stablecoin supply on the network keeps growing.

Ethereum app revenue hit an ATH

Given these developments, short sellers who do not employ proper risk management may encounter substantial losses if ETH prices rebound sharply.

2. Aster (ASTER)

As the first week of November unfolds, the liquidation map for Aster (ASTER) also indicates a significant imbalance, where short-side liquidations surpass long-side risks. If ASTER witnesses a rise to $1.4, approximately $44 million in short positions could be liquidated. Conversely, should it drop to $0.9, the long liquidations might exceed $15 million.

ASTER Exchange Liquidation Map. Source: Coinglass

What factors could lead to short liquidations for ASTER? The most prominent influence appears to come from social media, particularly recent posts by Binance founder Changpeng Zhao (CZ) on X. Following CZ's announcement of purchasing $2 million worth of ASTER tokens for long-term investment, the coin surged by 30%, spurring other influential figures to announce their ASTER acquisitions as well.

Though the price has since corrected, market uncertainty remains. If CZ shares any new updates regarding ASTER, it could instigate another price surge, increasing the risk of short liquidations. Short traders should remain cautious in these volatile conditions.

3. Dash (DASH)

The conversation surrounding privacy coins continues in November, with Dash (DASH) gaining prominence. It has outperformed Zcash (ZEC) by reaching its highest value in three years, while derivative traders are leaning towards short strategies. If DASH climbs to $105, more than $13 million in short positions could face liquidation.

DASH Exchange Liquidation Map. Source: Coinglass

Some analysts on X have optimistic projections, suggesting that DASH could reach prices between $100 and $140, and even as high as $250 if the privacy narrative continues to gain traction. In this FOMO-driven rally, predicting the end of the momentum becomes challenging. As long as the community remains engaged in positive discussions about DASH, shorting may expose traders to significant liquidation risks.

The altcoins currently capturing community attention—such as ETH, ASTER, and DASH—illustrate familiar themes observed in previous months, including Ethereum’s ecosystem, decentralized exchanges (DEX), and privacy narratives. This pattern implies a potential lack of new catalysts for the market. As such, if prices recover, those rallies may not be sustainable. Increasing volatility means both long and short traders may confront similar risks and losses ahead.