After three consecutive weeks of green candles, the altcoin market cap (TOTAL3) started in red in the final week of August. Mixed bearish and bullish signals make this week crucial in shaping the market’s direction for the remainder of the year.
In this context, several altcoins have seen a surge in open interest, raising the risk of large-scale liquidations.
1. Ethereum (ETH)
Ethereum recently set a notable record in open interest, which is the total value of unsettled contracts, surpassing $70 billion on August 23, marking an all-time high, according to Coinglass.
As of now, that figure remains near $69.8 billion. This reflects the intensity of Ethereum’s derivatives market, where traders are heavily betting with capital and leverage on short-term price moves.
At the same time, high OI signals a warning that ETH may face heightened volatility in the coming week.
ETH’s seven-day liquidation map shows that long positions (red on the left) slightly outweigh short positions (blue on the right).
This imbalance stems from accumulation activity by major players, which has fueled positive sentiment. More traders are betting on an upside scenario, but their losses could be larger if they are wrong.
If ETH continues its rally and climbs above $5,100 this week, short liquidations could total up to $4.1 billion. However, if the price moves against bullish expectations and drops below $4,100, long liquidations could approach $6 billion.
A recent BeInCrypto analysis revealed that older ETH holdings are being moved, a trend often tied to profit-taking. Additionally, Validator Queue data shows more than 846,000 ETH awaiting unstaking, which could flow back into the market.
These factors could trigger a downside move this week, putting long positions at risk.
2. Dogecoin (DOGE)
Recent analyses of DOGE suggest the meme coin is forming a large symmetrical triangle pattern. The final week of August marks a critical point as the price nears the triangle’s apex, where a breakout will confirm the next trend.
Crypto analyst KALEO predicts DOGE may soon break upward this week.
“Quick move back to $0.40 – $0.50 range from here. It’s time,” KALEO predicted.
This outlook aligns with many investors’ expectations, anticipating an altcoin season in the coming month. If DOGE climbs above $0.25 this week, short liquidations could cross $200 million.
Conversely, if DOGE falls below $0.20, long liquidations could exceed $170 million.
Currently, the total short liquidation volume outweighs the long liquidation volume. DOGE’s 6% pullback on August 25 appears to have weakened earlier bullish sentiment.
3. Hyperliquid (HYPE)
Hyperliquid’s (HYPE) liquidation map shows a clear imbalance, with long liquidations heavily outweighing shorts.
If HYPE drops to $39 this week, nearly $80 million in long positions could be liquidated. On the other hand, a breakout above $50 could liquidate about $24 million in shorts.
This suggests many traders are betting on continued upside for HYPE. BitMEX founder Arthur Hayes even forecast a 126x price increase.
Meanwhile, a new report from Syncracy highlighted a surge in Bitcoin spot trading on Hyperliquid, surpassing volumes on leading exchanges.
“Just now, BTC spot on Hyperliquid did more 24H volume than Coinbase and Bybit combined,” Syncracy Capital co-founder Ryan Watkins, said.
These factors explain why traders remain heavily skewed toward bullish bets on HYPE, creating a strong imbalance on its liquidation map.
The post 3 Altcoins at Risk of Major Liquidations in the Last Week of August appeared first on BeInCrypto.
