3 Altcoins at Risk of Major Liquidations in the Second Week of October

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3 Altcoins at Risk of Major Liquidations in the Second Week of October

The overall value of the cryptocurrency market hit a record high in October, exceeding $4 trillion. Bitcoin and other leading cryptocurrencies are drawing in the most investment, and as a result, the amount of potential sell-offs is increasing.

This article points out that some major altcoins could face dangers in early October, potentially causing significant losses for traders who have borrowed heavily and are making short-term bets.

1. Ethereum (ETH)

In early October, Messari noted that institutions are holding a greater share of Ethereum (ETH) than Bitcoin (BTC). This suggests continued strong demand for ETH from these investors.

According to Rick, an analyst at Messari, increasing investment into Ethereum ETFs, the approval of staking ETFs, and greater availability of funds globally are all key factors that could drive the price of Ethereum higher in a significant jump.

Traders who make quick trades are increasingly optimistic about Ethereum’s price and believe it will likely rise to new levels this month. This is reflected in the fact that more short-term traders are being liquidated on short positions than on long positions.

Data from Coinglass suggests that if the price of Ethereum (ETH) falls to $4,030 this week, around $9 billion worth of long positions could be closed out. On the other hand, if ETH rises above $5,000, roughly $2 billion in short positions could be liquidated.

If selling pressure continues to build this week, mass liquidations of long positions could follow.

2. XRP

As an analyst, I’m closely watching the SEC’s upcoming review in October. Several major players – including Franklin Templeton, Hashdex, Grayscale, ProShare, and Bitwise – have all applied to launch XRP ETFs, and the SEC will be evaluating those applications. It’s a significant moment for XRP and the potential for broader institutional investment.

As a researcher following the crypto space, I’ve noticed significant interest from major players – funds ranging from $200 million to a massive $1.5 trillion. Analyst Crypto King believes that if even a single one of these funds gains approval to invest, we could see a substantial influx of institutional money into XRP.

As a researcher, I’ve observed a strong sense of optimism in the XRP market. This is reflected in the trading activity, where many traders are heavily invested in the belief that the price will continue to rise. Looking at the liquidation heatmap, it’s clear that significantly more traders are holding long positions – meaning they’re betting on a price increase – than those holding short positions.

A drop in XRP’s price to $2.65 this week could lead to roughly $560 million worth of long positions being closed. On the other hand, if the price climbs to $3.3, about $370 million in short positions could be liquidated.

We’re seeing clear evidence that investors are selling to lock in profits, which could create problems for those who have borrowed heavily to buy assets. This increases the risk of forced selling.

3. Binance Coin (BNB)

BNB has been steadily increasing in value throughout October, surpassing $1,200. Many traders seem to be buying now out of fear of missing out, hoping to profit from the short-term price increases.

According to current market data, if the price of BNB falls to $1,034, it could trigger over $300 million in liquidations for those betting the price would go up (long positions). On the other hand, if BNB rises to $1,340, around $80 million in liquidations could occur for those betting the price would go down (short positions).

Although BNB’s price could continue to rise, the total amount of open interest in BNB futures contracts reached a record high of over $2.5 billion in October. Historically, these kinds of increases in open interest have often been followed by significant price drops.

If the price of BNB keeps going up, those who bet on it rising (long traders) could still make money. But without careful planning to limit potential losses, they risk significant losses if the price suddenly drops.

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2025-10-06 12:28