The cryptocurrency market enters the final week of October under high tension. Data from Coinglass reveals a significant risk of liquidation for altcoins like Solana (SOL), Zcash (ZEC), and Virtual Protocol (VIRTUAL). These coins face billions in leveraged long positions that could be wiped out if prices fall.
Solana (SOL) presents the most exposed scenario. If the price of SOL falls to the $178 level, $1.6 billion in long positions could be liquidated. In contrast, a rise to $225 would only liquidate $260 million in short positions. Data indicates that SOL reserves on exchanges have steadily increased since early October. This suggests a growing willingness among holders to sell, increasing bearish pressure.
Zcash (ZEC) also shows a strong bullish tilt. A drop to $287 could trigger over $42 million in losses from long liquidations. ZEC’s Open Interest has reached an all-time high of over $500 million. This figure is nearly ten times higher than its 2021 peak.
Finally, Virtual Protocol (VIRTUAL) presents a risk of $8.8 million in long liquidations if its price drops to $1.29. This comes after the token surged over 100% last week.
The extreme leverage in these altcoins is not coincidental. It is driven by very specific market narratives: “AI Agents” and “Privacy.” Solana has benefited from interest in x402 tokens, utilizing the Payai network. On the other hand, Virtual Protocol is a key launchpad for AI Agent tokens.
Zcash, a privacy coin, experienced a rally of over 750% in the last three months. This interest was partly fueled by Arthur Hayes’s prediction of “ZEC to $10,000.” Furthermore, its “shielded pool” has surpassed 4.5 million ZEC, locking up nearly 27.5% of the total supply.
Could the end of the narrative cause a sharp drop?
The current situation generates extreme volatility. The dominance of derivatives in Zcash’s price action indicates that sharp moves are likely. ZEC traders must be cautious. The asset has reached levels similar to its 2021 peak.
This means that nearly all holders from the past four years are in profit. Such a situation could trigger heavy selling pressure and sudden liquidations. In VIRTUAL’s case, the momentum from AI Agents and x402 tokens could fade as quickly as it emerged, similar to memecoin trends.
Although bullish sentiment is strong, the derivatives economy shows clear vulnerability. Traders are betting heavily on the continuation of the AI and Privacy narratives. However, on-chain data, like the increase in SOL reserves, suggests that long-term investors are preparing to sell.
If these narratives begin to cool down, the current leverage could act as fuel for a severe correction. The $178 level for SOL, $287 for ZEC, and $1.29 for VIRTUAL are the critical supports to watch this week.
