Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Market sentiment turned to extreme fear on December 1. Short positions dominate the derivatives market. Many major altcoins are showing severe imbalances in their asset liquidation charts, which could lead to a new liquidation record.
The following analysis highlights the key factors that could cause the market to exceed short-term expectations in the first week of December.
1. Ethereum (ETH)
The 7-day ETH liquidation chart shows that the liquidation volume of short positions significantly exceeds that of long positions. This indicates that traders are aggressively selling ETH.
Sponsored
Sponsored
If ETH rebounds to $3,150 this week, the cumulative correct liquidations could exceed $4 billion.
What risks should short sellers take into account? Data on exchange balances on ETH could be an important signal.
CryptoQuant data shows that the supply of ETH on exchanges has dropped to a low of 16.6 million ETH. The trend of withdrawing ETH from exchanges has accelerated over the past month despite the decline in the price of ETH.
Investor Momin predicted That he is With ETH exchange reserves reaching all-time lows… I believe that Ethereum will lead the next stage of the market higher.
Also many analyses It suggests a further declineHowever, the continued accumulation, as seen in the decrease in supply on the exchanges, may soon reinforce the scarcity as the selling pressure weakens. This could lead to a sudden rebound in ETH.
Sponsored
Sponsored
2. Solana (SOL)
Similar to ETH, SOL shows a clear imbalance in its settlement chart. Traders actively sold SOL in early December.
If the SOL price rebounds to $145 this week, the cumulative liquidations could exceed $1 billion.
Is there any basis for SOL recovery this week? Positive series indicators reflect positive signals. Nansen said Solana continued to lead in transaction volume during the week.
In prediction markets, many investors predict I still am The price varies between $150-$200 in December. In addition, SOL US ETF I saw Streams for five consecutive weeks.
Arthur Hayes, co-founder of BitMEX, said also Only Ethereum and Solana have the institutional use cases necessary for long-term survival.
Sponsored
Sponsored
3. XRP
The seven-day liquidation chart for XRP indicates that short activity dominates. If the XRP price rebounds above $2.30 this week, the cumulative correct liquidations could exceed $500 million.
Short sellers must consider several factors.
Many analysts expect this XRP could reach $2.6 This month. This move could seriously impact short sellers.
Sponsored
Sponsored
The increase in the supply of stablecoins indicates a potential recovery in the market
Another factor worth considering is the renewed expansion of… See stablecoins.
Coinglass data shows that the combined market capitalization of USDT, USDC, DAI and FDUSD reached a new high of $267.5 billion at the beginning of December.
The increase in stablecoin supply indicates that market liquidity may increase this month. Analyst Ted noted that this uptrend ends a four-week decline in the market value of stablecoins.
Ted said what is “The market capitalization of stablecoins is rising again. It has fallen for four weeks in a row, which explains the reason for the decline. If it goes up from here, new liquidity will be introduced into the cryptocurrency market, and this is good for BTC and altcoins.”
The three major coins mentioned above indicate a potential liquidation volume of $5.5 billion if the market unexpectedly rebounds.
If a real recovery occurs, a new liquidation record may be set. Investors may need to consider all of these factors to reduce the risk on their positions.
