Key Takeaways

XRP: Anticipation around an upcoming Spot XRP ETF launch may lead to significant long liquidations if prices drop, despite declining interest from new investors.
Zcash (ZEC): The price rally is attracting traders to long positions; however, a sudden correction could result in substantial losses.
Starknet (STRK): A price surge may hint at a new bullish trend, but a large token unlock could add pressure on prices.

Key Takeaways

XRP: Anticipation around an upcoming Spot XRP ETF launch may lead to significant long liquidations if prices drop, despite declining interest from new investors.
Zcash (ZEC): The price rally is attracting traders to long positions; however, a sudden correction could result in substantial losses.
Starknet (STRK): A price surge may hint at a new bullish trend, but a large token unlock could add pressure on prices.

Three Altcoins Facing Significant Liquidation Risk in Early November

As the market still awaits a full altcoin season, certain altcoins are outperforming their peers in the second week of November. However, these specific tokens also carry a risk of major liquidations for short-term traders.

Analyzing Altcoins at Risk of Liquidation

1. XRP

Trader sentiment for XRP is currently optimistic, particularly with Canary Capital set to launch its Spot XRP ETF on November 13. In addition, five XRP spot ETFs—including those from Franklin Templeton, Bitwise, Canary Capital, 21Shares, and CoinShares—have been listed on the DTCC, bolstering investor confidence in potential upcoming approvals.

The 7-day liquidation map highlights a significant number of long positions, as many traders expect XRP to rally this week. However, recent analysis from BeInCrypto indicates a decrease in new XRP addresses, signaling reduced interest from new investors. Furthermore, the MVRV Long/Short Difference has declined, raising concerns about a possible price correction.

If XRP dips toward $2.10, long positions may face liquidations exceeding $340 million. Conversely, a rise to $2.75 could lead to around $69 million in liquidations for short positions.

2. Zcash (ZEC)

Zcash (ZEC) continues its robust rally in the second week of November. Having previously hit $750, the price corrected to about $658, yet many traders remain hopeful for a rise toward $1,000.

The current liquidation map suggests that traders in short-term derivatives are investing heavily in long positions, which could amplify losses if ZEC encounters a downturn. Analysts warn that ZEC may be forming a parabolic uptrend after a significant 10x rally, signaling a potential nearing of the trend's peak.

Investor Gunn stated, “Just sold 90% of my ZEC. I’m bullish on the privacy thesis, but parabolic charts rarely sustain in the short run without a meaningful retrace. Too much short-term FOMO in my opinion.”

Should ZEC fall to $540, more than $72 million in long positions could be liquidated. On the other hand, if ZEC rises to $760, approximately $44 million in short positions may be affected.

3. Starknet (STRK)

In the second week of November, Starknet (STRK) has taken the market by surprise with a 30% daily surge, recovering losses from a sharp decline last month. Many analysts believe STRK could be breaking through a long-term resistance line, possibly setting off a new bullish trend.

The liquidation map data reflects this short-term bullish outlook, showing a greater number of potential long liquidations than shorts. However, a report from CryptoRank warns that STRK is one of the top 7 altcoins with significant token unlocks this week, with over 127 million STRK tokens scheduled to be released. This event may contribute substantial selling pressure and complicate the plans of traders in leveraged long positions.

If STRK drops to $0.128, it could see approximately $14 million in long positions liquidated. Conversely, if it surpasses $0.20, around $1.78 million in short positions could be impacted.