Altcoins at Risk of Major Liquidations in the 1st Week of September

This whale activity of swapping BTC for ETH could affect trader sentiment. It may drive ETH’s price higher and inflict losses on short positions.

2. XRP

XRP’s 7-day liquidation map shows a severe imbalance. Short liquidations far outweigh long liquidations. Many short-term traders appear to be betting heavily on XRP’s decline in the first week of September.

If XRP climbs to $3, over $500 million in short positions would be liquidated. In contrast, if XRP falls to $2.42, only about $200 million in long positions would face liquidation.

From a technical perspective, analysts warn that the current $2.70 level acts as strong support. Prices may rebound from here, putting short positions at high risk.

In addition, 15 XRP ETF applications are still pending with the SEC. Any positive news regarding these ETFs could ignite a bullish wave among XRP investors.

3. Pyth Network (PYTH)

On August 28, the US Department of Commerce surprised crypto investors by partnering with Pyth and Chainlink to put GDP data on the blockchain. PYTH’s price doubled in one day.

That positive sentiment appears to be spilling into September. Short-term traders are actively going long on PYTH. They risk nearly $9 million in losses if PYTH drops to $0.15 this week.

Charts show that long liquidations accelerate faster as the price declines, reflected by taller bars on the left side of the distribution.

Conversely, if PYTH rises to $2 this week, accumulated short liquidations could reach $10 million.

Good news may fuel excessive short-term euphoria. Yet it could also trigger a “sell the news” event, as early buyers take profits. If that happens, PYTH may undergo a deeper correction than long traders expect.