3 Altcoins Facing Major Liquidation Risks in the First Week of February

The crypto market enters the first week of February with an intensifying battle between bulls and bears. Bears still hold the advantage, but bulls appear to be spotting an opportunity. This situation makes price volatility more complex. Liquidation losses are increasing for both Long and Short positions. Why should altcoins like Solana (SOL), Hyperliquid (HYPE), and Tron (TRX) be closely watched? The following article explores the details. 1. Solana (SOL) In the early days of February, SOL briefly dropped below $100 amid broad market-wide negative pressure. The 7-day liquidation heatmap shows that potential liquidations from Short positions dominate. Leveraged short-term traders seem convinced that SOL could fall even deeper. SOL Exchange Liquidation Map. Source: Coinglass However, a price around $100 places SOL at its most important support zone over the past two years. Increasing leverage and capital to short at a major support level often comes with significant risk. Recent BeInCrypto analysis highlights a sharp surge in new Solana addresses during January. More than 10 million new addresses were being created daily. In addition, several emerging factors may support a recovery. These include user growth from meme coin launchpads, the expansion of the USD1 stablecoin, and SOL joining the privacy trend through GhostSwap. Selling pressure driven by overall negative sentiment is now colliding with Solana’s own bullish catalysts around the $100 level. This conflict could lead to sharp wick movements. Both Long and Short traders may face liquidation losses. CoinGlass data suggests that if SOL rebounds above $113 this week, Short liquidations could reach $500 million. On the other hand, if SOL continues falling toward $86, Long positions could suffer more than $142 million in liquidations. 2. Hyperliquid (HYPE) Hyperliquid (HYPE) is one of the few altcoins that has managed to maintain a 50% rally since the January 21 bottom. Most other altcoins have been setting new ...