Three altcoins face the risk of liquidation in the third week of December.

According to the Crypto Fear & Greed Index, crypto market sentiment in the third week of December remained dominated by fear, with a rating of extreme fear. This negative sentiment led to a surge in Short positions in the market.

However, some altcoins currently possess unique dynamics that could create a strong liquidation effect on Short positions. So, which altcoins are these, and what are the specific risks for Short positions?

1. Solana (SOL)

The liquidation map for the last 7 days for SOL shows that the volume likely to be liquidated from Short positions is double that of Longing positions.

Specifically, if the SOL rises to $147 this week, traders holding Short positions could face losses of up to $1 billion. Conversely, if the SOL falls below $120, Longing investors could be liquidated with a total value of approximately $500 million.

Several factors suggest that investors should exercise caution if they intend to hold Short positions this week.

First, the SOL ETF recorded seven consecutive days of positive inflows last week. Notably, the Bitwise SOL ETF has maintained a 33-day chain of positive inflows since its launch, currently holding over $600 million worth of SOL. This indicates that demand from financial institutions remains very stable.

Secondly, SOL has formed a solid support zone around $130 for the past four weeks. In addition, positive news about XRP expanding its DeFi applications on Solana via Hex Trust has also helped improve market sentiment.

As a result, SOL has a fairly good foundation for a recovery this week, and this could trigger a wave of Short position liquidation.

2. Cardano (ADA)

Similar to SOL , the overall negative market sentiment has led ADA Derivative investors to significantly increase their Capital and use greater leverage for Short positions.

This action causes the total value of Short positions that could be liquidated to skyrocket. If ADA rises to $0.45 this week, Short positions could face losses of up to $50 million. Conversely, if ADA falls to $0.35, Longing positions could be liquidated at around $19.5 million.

One important factor that those Short ADA should pay attention to in order to minimize risk is the positive sentiment surrounding the Midnight project.

Midnight Network is a new blockchain developed by Input Output Global (IOG) – the company behind Cardano, founded by Charles Hoskinson .

Midnight Network focuses on privacy with zero-knowledge proof technology, specifically ZK-SNARKs. In the past 7 days, the NIGHT Token has increased in price by over 150% . This project also recently won the "Breakthrough of the Year" award from BeInCrypto.

The high demand for NIGHT has led to increased demand for ADA . According to the Taptool platform, in the past 5 days, the total trading Volume of NIGHT on DEXs has exceeded 85 million ADA . Additionally, ADA holders can Staking ADA to receive NIGHT .

3. PIPPIN

PIPPIN is a meme coin that gained significant attention at the end of this year, with its market Capital rising from under $60 million to over $350 million in just three weeks.

Liquidation map data shows that the total value likely to be liquidated in Longing positions remains greater than in Short. This reflects that many short-term traders continue to expect the price of PIPPIN to rise.

However, this expectation carries significant risks. According to the latest analysis from the on-chain data tracking account Evening Trader Group, only 93 wallets currently control 73% of the total PIPPIN supply.

These wallets are Chia into three main accumulation groups. Each group exhibits different origins and behaviors. According to Evening Trader Group, this accumulation could be the main reason for the sharp price increase. However, selling pressure could emerge at any time.

Furthermore, the account linked to the project (ThePippinCo) has not posted any updates since June 2024. This silence is raising concerns about the development team's commitment to the project.

If PIPPIN falls below $0.30 this week, over $9 million in Longing positions could be liquidated. This number could be even larger if PIPPIN experiences a massive sell-off, similar to the fate of other manipulated meme Token .