3 Altcoins face significant liquidation risks in the second week of November

Although the altcoin season has not truly returned yet, some altcoins are standing out with performance that exceeds the rest of the market in the second week of November. However, these tokens also carry the risk of triggering large-scale liquidations for short term traders.

So what are the altcoins attracting attention, and what risks may arise when trading their derivative products?

XRP

The sentiment of short term traders towards XRP remains very positive, as Canary Capital prepares to launch the XRP spot ETF fund on November 13.

In addition, five XRP spot ETF funds from Franklin Templeton, Bitwise, Canary Capital, 21Shares, and CoinShares have appeared on the DTCC list. This event reinforces investors' confidence in the likelihood that XRP ETFs will be approved soon.

XRP exchange liquidation map | Source: CoinglassThe liquidation map over the last 7 days shows a large concentration of long positions at risk of liquidation, reflecting strong expectations from many traders for a price increase of XRP this week.

However, according to the latest analysis from Coinphoton, the number of new XRP wallets has significantly decreased over the past week, indicating waning interest from new investors. At the same time, the MVRV Long/Short Difference index has also dropped, increasing the risk of a price correction.

If XRP drops to the 2.10 USD mark this week, long positions could be liquidated with a total value of over 340 million USD. Conversely, if the price rises to 2.75 USD, short positions could face liquidation of about 69 million USD.

Zcash (ZEC)

Zcash (ZEC) continues to maintain an impressive upward momentum in the second week of November. After reaching a peak of 750 USD and adjusting to around 550 USD, many traders still expect the price to approach the 1,000 USD mark.

The 7-day liquidation map shows that short term derivatives traders are increasing their capital allocation and using leverage for long positions, which increases the risk of losses if ZEC adjusts this week.

ZEC exchange liquidation map | Source: CoinglassIf the price of ZEC drops to 540 USD, over 72 million USD in long positions could be liquidated. Conversely, if ZEC rises to 760 USD, around 44 million USD in short positions could be wiped out.

Experts warn that ZEC may be forming a classic parabolic rise pattern after a tenfold price increase, and may soon enter the final stage of this trend.

“I just sold 90% of my ZEC holdings. I still believe in the security potential, but parabolic charts are rarely sustainable in the short term without a clear correction. In my opinion, there is currently too much short-term FOMO,” investor Gunn shared.

Starknet (STRK)

Starknet (STRK) surprised the market by soaring 30% in just one day during the second week of November, completely wiping out the losses from the sharp decline last month.

Many analysts believe that STRK may be breaking through the long-term resistance line, opening up the possibility for a strong new growth cycle.

The liquidation map data also reflects this short term optimistic sentiment, with the amount of long positions at risk of liquidation overwhelming short.

STRK Exchange Liquidation Map | Source: CoinglassHowever, according to CryptoRank, STRK is among the 7 altcoins with the largest token unlocks this week, with over 127 million STRK tokens set to hit the market. This could create significant selling pressure, negatively impacting long positions using leverage.

If STRK drops to 0.128 USD, about 14 million USD of long positions could be liquidated. Conversely, if STRK exceeds the 0.20 USD mark, approximately 1.78 million USD of short positions are at risk of being wiped out.

Mr. Teacher