While the market shows signs of recovery this week, short-term traders are aggressively allocating capital and leverage to Long positions. This behavior creates favorable conditions for large liquidations if price movements suddenly reverse.
Several major altcoins in the market show rising risks for Long positions as short-term traders become overly confident.
1. Ethereum (ETH)
The 7-day liquidation map for Ethereum shows a severe imbalance. The cumulative liquidation volume of Long positions heavily outweighs that of Short positions.
“Long positions on $ETH have increased significantly, while short positions have almost disappeared,” analyst CW commented.
Traders have reasons for this behavior. ETH recently surpassed $2,200, its highest level since the first week of February. A report from BeInCrypto also highlighted increased accumulation by ETH whales.
However, analyst Maartun identified a warning signal during Ethereum’s recovery. ETH Open Interest increased by more than 18% within 24 hours. The chart reveals a concerning pattern. Over the past month, whenever ETH’s 24-hour OI Change surged, the price tended to correct and trigger liquidations.
As a result, traders who use excessive leverage on Long positions could face losses. If ETH falls below $2,000 this week, the liquidation volume of Long positions could exceed $5 billion.
2. XRP
Similar to ETH, XRP’s liquidation map also shows a clear imbalance. The potential cumulative liquidation volume of Long positions dominates the market.
If XRP drops below $1.3 this week, Long traders could face losses exceeding $285 million.
What risks could trigger such a scenario? Data from CryptoQuant shows that while XRP has been recovering, XRP reserves on Binance have risen to their highest level since the beginning of the year.
Rising exchange reserves may signal that many investors are taking advantage of the price rally to sell. This behavior could create risks for Long positions this week.
In addition, a recent BeInCrypto report indicates weakening demand for XRP trading. Many retail investors appear to be losing patience.
XRP ETFs also diverge from the broader ETF trend. They have recorded capital outflows and have become a major crypto ETF category experiencing withdrawals.
3. River (RIVER)
River (RIVER) has attracted significant attention in the crypto market since the beginning of the year. The token belongs to the BNB Chain ecosystem and focuses on building a chain-abstraction stablecoin system.
By March, RIVER recorded an impressive recovery. The token surged more than 200% from its February bottom. However, selling pressure may emerge in March.
On March 22, the team will unlock 1.11 million RIVER tokens. This amount represents 2.39% of the released supply. The news could raise investor concerns and affect RIVER’s price.
If RIVER falls below $20 this week, the cumulative liquidation volume of Long positions could exceed $16 million.
These altcoins share a common feature. The liquidation volume of Long positions dominates the market this week. Long traders may still generate profits. However, unexpected developments could quickly erase those gains.
The US dollar remains strong. The Federal Reserve is likely to keep interest rates unchanged. Military tensions in the Middle East also continue. These factors increase the risk of sudden market volatility.
