3 Altcoins Facing Major Liquidation Risks in the Last Week of October
The market enters the closing week of October dominated by two main narratives: AI Agents and Privacy. As a end result, a number of altcoins in these sectors face important liquidation dangers if costs transfer towards merchants’ expectations.
Which altcoins are in danger, and what ought to merchants look ahead to? The following evaluation offers the particulars.
1. Solana (SOL)
The 7-day liquidation map of Solana (SOL) exhibits a big imbalance between long and short positions.
Short-term derivatives merchants have closely leveraged bullish positions. They stand to lose the most if SOL fails to rise additional this week.
Several elements clarify why merchants anticipate SOL to extend. The latest surge in curiosity round x402 tokens has benefited Solana, because it serves as one of the two key networks—alongside Base—supporting x402 ecosystem funds by way of the Payai Network facilitator.
However, on-chain information exhibits that (*3*) since early October. This development signifies a rising readiness amongst holders to promote, elevating the threat of a sudden worth drop.
If SOL falls to $178, the cumulative liquidation quantity for lengthy positions might attain $1.6 billion. In distinction, if SOL climbs to $225, round $260 million may very well be liquidated from brief positions.
2. Zcash (ZEC)
Former BitMEX CEO Arthur Hayes lately predicted that ZEC could reach $10,000, serving to gas a robust rally by October that pushed costs above $370.
“ZEC to $10,000.” Arthur Hayes said.
Over the previous three months, Zcash (ZEC) has surged greater than 750%, pushed by renewed attention to privacy coins.
A latest BeInCrypto report highlighted that Zcash’s shielded pool has surpassed 4.5 million ZEC, locking practically 27.5% of its complete provide and signaling rising confidence in privacy-focused know-how.
These developments have inspired derivatives merchants to take lengthy positions, resulting in a closely skewed liquidation map favoring longs over shorts.
However, lengthy merchants needs to be cautious. ZEC has reached ranges much like its 2021 peak, that means practically all holders from the previous 4 years are worthwhile. This might set off heavy promoting strain and sudden lengthy liquidations.
Additionally, ZEC’s open curiosity has reached an all-time high of over $500 million, practically ten occasions greater than throughout its 2021 peak. This signifies that ZEC’s worth motion is now dominated by derivatives exercise, typically ensuing in sharp volatility.
If ZEC drops to $287, lengthy merchants might face over $42 million in liquidation losses. Conversely, a transfer to $407 might set off round $23 million in liquidations for brief merchants.
3. Virtual Protocol (VIRTUAL)
This week, the Virtuals Protocol, an ecosystem for AI brokers, saw a number of integrations, together with Coinbase Retail DEX listings for all agent tokens.
A constructive report from a16z on the potential of AI Agents has additional boosted investor curiosity in VIRTUAL. At the similar time, the x402 token wave has added extra momentum, as the Virtual protocol serves as a key launchpad for AI Agent tokens.
According to Dune information, the quantity of each day energetic addresses on Virtual doubled in October to over 17,000 wallets. This resurgence has strengthened bullish sentiment amongst lengthy merchants.
If VIRTUAL rises to $1.8, the cumulative liquidation quantity for brief positions might attain $7.8 million.
However, the token’s worth jumped over 100% final week—from $0.71 to $1.64—earlier than correcting to round $1.45 at the time of writing. If profit-taking continues and the worth drops to $1.29, lengthy liquidations might complete $8.8 million.
The key query now could be whether or not the AI Agent and Privacy narratives will lose momentum as rapidly as they emerged.
Many analysts warn that the hype round x402 tokens, which at present helps the rally in AI Agent property, could fade just as quickly as the meme token trend. Meanwhile, discussions surrounding Privacy cash are already showing signs of cooling down as October attracts nearer.
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