Leverage Turns to Loss: $351M in Altcoin Long Liquidations at Risk

In the past 24 hours, cryptocurrency markets have recorded $351 million in liquidations, with the majority involving long positions, according to exchange data. This figure highlights the high degree of leverage and speculative trading activity within the sector. Altcoins such as XRP, DOGE, and HYPE are particularly exposed, with significant liquidation risks tied to price fluctuations.

XRP long positions face a potential $467 million in losses if the price drops below $2.60, as highlighted by liquidation data from derivatives exchanges. While XRP has recently shown a 8% rebound in September and broken out from a descending trendline, key concerns remain. These include a record-high volume of XRP reserves on Binance, a decline in XRPL ecosystem activity, and reduced interest on Google Trends. These factors could hinder its upward momentum and trigger heavy losses for leveraged long traders.

Similarly, Dogecoin (DOGE) is at risk of $354 million in liquidations if the price falls below $0.20, according to the same data. Traders are largely betting on a bullish move, possibly driven by anticipation of the first DOGE ETF launch in September and inflows from retail investors. However, the macroeconomic calendar this week, including the release of the Producer Price Index and Consumer Price Index, could introduce volatility. These events are known to affect both Bitcoin and altcoins in the short term and may lead to unexpected losses for long traders.

Hyperliquid (HYPE), currently trading near its all-time high, presents another area of risk. If HYPE drops to $42, long traders could face over $111 million in liquidations. While recent developments—such as Hyperliquid’s plan to launch a native stablecoin—have driven bullish sentiment, the market remains sensitive to profit-taking pressure following a breakout. Traders who fail to lock in gains may face heavy losses if the price corrects sharply after reaching new highs.

The broader altcoin market, excluding Bitcoin and Ethereum, remains around $1 trillion in market capitalization. Despite this, the liquidation map suggests that short-term derivatives traders are largely optimistic about a potential upward move in the second week of September. However, this bullish outlook is not guaranteed, and the scale of potential losses increases significantly if expectations are not met. The data underscores the high leverage and concentrated positions that could be destabilizing in the event of a sudden price reversal.