Top 3 Altcoins Face Significant Liquidation Risks This December

Overview: The altcoin market in December has shifted away from the steep losses experienced last month, entering a sideways trajectory. Some altcoins, boosted by unique news and catalysts, are attracting traders to take strong positions. However, this week brings key macro events that may expose these positions to substantial liquidation risks.

Key Takeaways

The altcoin market is stabilizing but faces risks due to upcoming macro events.
Zcash (ZEC) has experienced a significant price drop and could see up to $98 million in liquidations if it falls below $295 this week.
Aster (ASTER) has launched a buyback program that may help its price recover, but short positions could be at risk.
Bittensor (TAO) is under pressure with a large volume of long-side liquidations, especially ahead of its upcoming halving event.

1. Zcash (ZEC)

Zcash (ZEC) reached an all-time high of $748 last month, but has since fallen by 50%. This steep decline often attracts investors who feel they missed an earlier chance to buy. Consequently, derivatives traders are optimistic about a rebound in December, leading to an increase in long positions.

Additionally, Zooko Wilcox, Zcash's founder, will participate in a December 15 SEC discussion on cryptocurrency, financial oversight, and privacy, which has further excited traders. Many expect his presence will bolster support for privacy-focused altcoins, including ZEC.

If ZEC continues to push higher without a proper stop-loss strategy, traders could find themselves facing nearly $98 million in liquidations if the price drops to around $295 this week. Recent analyses indicate that ZEC remains in an overall downtrend following a previous rise fueled by fear of missing out (FOMO), and it currently resembles a bubble structure.

2. Aster (ASTER)

Aster, a prominent decentralized exchange (DEX) on the BNB Chain, enjoyed a surge in activity during the perpetual DEX boom in September. However, its price has since plummeted by more than 60%, now trading below $1.

Current liquidation data shows that the total volume of active short position liquidations exceeds that of long positions, indicating potential risks for short sellers this week. Aster recently started an accelerated buyback program on December 8, 2025, with a new daily buyback rate of around $4 million, up from the previous $3 million.

This buyback initiative could potentially lead to a price increase in the coming days. If ASTER manages to rise to $1.07, liquidations on the short side could total more than $32 million. Analysts also note that the price has found strong support and recently broke above a month-long descending trendline.

3. Bittensor (TAO)

The liquidation data for Bittensor (TAO) reveals a significant imbalance, with long-side liquidations vastly outnumbering short liquidations. If TAO drops to $243.50, long traders risk incurring losses close to $17 million. On the flip side, if the price rises to $340, approximately $5 million in short positions could be liquidated.

The surge in long positions is largely due to anticipation surrounding TAO’s first halving event. Scheduled for around December 14, this halving will cut the daily supply from 7,200 TAO to 3,600 upon reaching a total supply of 10.5 million tokens. Grayscale reports that this reduction in supply may enhance TAO’s scarcity, which historically can lead to increased network value, similar to what Bitcoin has experienced following its halvings.

Despite the bullish sentiment, traders who do not have disciplined stop-loss measures in place may experience significant liquidations due to the “sell-the-news” phenomenon. Additionally, the second week of December marks the time when the Federal Reserve will announce its interest rate decision—a key event that typically causes considerable market fluctuations, potentially affecting both long and short positions in the crypto space.

By staying informed on these developments and practicing risk management, investors can navigate this unpredictable market more effectively.