3 Altcoins Facing Major Liquidation Risks This Week (November 2024)

• Why Are These 3 Altcoins Under Liquidation Pressure?
• 1. XRP: ETF Hype vs. Weak Fundamentals
• 2. Zcash (ZEC): Parabolic Rally or Imminent Crash?
• 3. Starknet (STRK): Token Unlocks Threaten Rally
• FAQs: Your Burning Questions Answered

The crypto market is buzzing with volatility as three altcoins—XRP, Zcash (ZEC), and Starknet (STRK)—face significant liquidation risks this week. With traders heavily leveraged on both long and short positions, even minor price swings could trigger massive liquidations. Here’s a deep dive into the factors at play, including ETF rumors, parabolic rallies, and token unlocks, and what it means for investors. Buckle up—this week could get wild.

Why Are These 3 Altcoins Under Liquidation Pressure?

The crypto market is no stranger to volatility, but this week, three altcoins stand out for their extreme liquidation risks. XRP, Zcash (ZEC), and Starknet (STRK) are all facing potential price swings that could wipe out millions in Leveraged positions. Let’s break down each case.

1. XRP: ETF Hype vs. Weak Fundamentals

XRP traders are riding high on Optimism as Canary Capital prepares to launch its Spot XRP ETF on November 13, 2024. Adding fuel to the fire, five XRP ETFs from Franklin Templeton, Bitwise, Canary Capital, 21Shares, and CoinShares were recently listed on the DTCC. This has many speculating that multiple XRP ETFs could soon get the green light.

However, the data tells a mixed story. Coinglass’s 7-day liquidation heatmap shows a heavy concentration of long positions, suggesting traders are betting big on an XRP rally. But BeInCrypto’s analysis reveals a worrying trend: new XRP addresses dropped sharply last week, signaling dwindling interest from new investors. The MVRV Long/Short ratio also declined, increasing the odds of a price correction.

If XRP drops to $2.10 this week, over $340 million in long positions could be liquidated. Conversely, a surge to $2.75 might wipe out $69 million in short positions. As one BTCC analyst put it, “The ETF HYPE is real, but without fresh capital, XRP could face a brutal squeeze.”

2. Zcash (ZEC): Parabolic Rally or Imminent Crash?

ZEC’s meteoric rise continues, with the privacy coin hitting $750 before correcting to $658. Many traders are still eyeing the $1,000 mark, but the liquidation heatmap reveals a dangerous imbalance: short-term derivatives traders are piling into leveraged longs.

A drop to $540 could liquidate $72 million in longs, while a climb to $760 might erase $44 million in shorts. Notably, some analysts believe ZEC is forming a classic parabolic curve—a pattern often followed by steep corrections. crypto influencer Gunn recently tweeted, “Sold 90% of my ZEC. Privacy tech is solid, but parabolic charts rarely hold without a major pullback. Too much FOMO right now.”

3. Starknet (STRK): Token Unlocks Threaten Rally

STRK shocked markets with a 30% daily surge last week, recovering from October’s slump. Some analysts argue it’s breaking a long-term resistance line, potentially signaling a new bull run. The liquidation heatmap reflects this optimism, with longs dominating.

But there’s a catch: CryptoRank reports that STRK is among the top 7 altcoins with major token unlocks this week. Over 127 million STRK tokens will flood the market, potentially crushing leveraged longs. A dip to $0.128 could liquidate $14 million in longs, while a jump to $0.20 might wipe out $1.78 million in shorts.

FAQs: Your Burning Questions Answered

What’s driving XRP’s liquidation risks?

ETF speculation is clashing with weak on-chain metrics. While institutional interest grows, retail participation is fading—a recipe for volatility.

Is Zcash’s rally sustainable?

Parabolic moves rarely end well. With leveraged longs stacking up, even a minor correction could trigger cascading liquidations.

How will STRK’s token unlock impact prices?

History shows large unlocks often lead to sell pressure. Traders should watch order books closely for signs of dumping.