The altcoin market is going through a critical phase during this third week of November, where liquidation risk has skyrocketed alarmingly for three leading ecosystem projects. Analyst Nhat Hoang warns that, with the total alternative market capitalization falling below the one trillion dollar mark, current volatility threatens to violently shake leveraged positions in both directions.
On the other hand, on-chain data reveals an explosive scenario for Ethereum, whose liquidation map shows a massive imbalance. If the ETH price manages to rebound towards 3,500 dollars, more than 3 billion dollars in short sell orders could be executed; likewise, Solana presents a similar landscape where a rally to 156 dollars would wipe out nearly 800 million in bearish positions, despite the prevailing negative sentiment.
Will the bulls manage to reverse extreme fear or will supports collapse?
In contrast, the situation for Zcash is worrying for bullish traders, as its open interest has reached an all-time high of 1.38 billion dollars. A drop below the 600 dollar support could trigger long position liquidations worth 123 million, suggesting that the cryptocurrency market is at a tipping point where excessive leverage could work against it.
In this way, it is fundamental to highlight that, although sentiment in Ethereum has touched levels of “extreme fear,” historically this indicator precedes strong recoveries from the 3,100 dollar support. Furthermore, Solana ETFs recorded positive net inflows of 46 million last week, which offers a solid fundamental basis for a possible rebound that contradicts the short sellers’ bearish narrative.
To conclude, investors must operate with maximum caution while these assets test their key invalidation levels in the coming days. The combination of potential massive liquidations and a hypersensitive market suggests that any sharp movement in Ethereum, Solana, or Zcash will define the trend for the rest of the month.
