The market enters the ultimate week of October dominated by two main narratives: AI Brokers and Privateness. In consequence, a number of altcoins in these sectors face vital liquidation dangers if costs transfer towards merchants’ expectations.
Which altcoins are in danger, and what ought to merchants look ahead to? The next evaluation supplies the main points.
1. Solana (SOL)
The 7-day liquidation map of Solana (SOL) reveals a big imbalance between lengthy and quick positions.
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Quick-term derivatives merchants have closely leveraged bullish positions. They stand to lose probably the most if SOL fails to rise additional this week.
A number of components clarify why merchants count on SOL to extend. The latest surge in curiosity round x402 tokens has benefited Solana, because it serves as one of many two key networks—alongside Base—supporting x402 ecosystem funds by way of the Payai Community facilitator.
Nonetheless, on-chain knowledge reveals that SOL reserves on exchanges have been steadily rising since early October. This development signifies a rising readiness amongst holders to promote, elevating the danger of a sudden worth drop.
If SOL falls to $178, the cumulative liquidation quantity for lengthy positions may attain $1.6 billion. In distinction, if SOL climbs to $225, round $260 million could possibly be liquidated from quick positions.
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2. Zcash (ZEC)
Former BitMEX CEO Arthur Hayes lately predicted that ZEC may attain $10,000, serving to gas a powerful rally by way of October that pushed costs above $370.
“ZEC to $10,000.” Arthur Hayes mentioned.
Over the previous three months, Zcash (ZEC) has surged greater than 750%, pushed by renewed consideration to privateness cash.
A latest BeInCrypto report highlighted that Zcash’s shielded pool has surpassed 4.5 million ZEC, locking almost 27.5% of its whole provide and signaling rising confidence in privacy-focused expertise.
These developments have inspired derivatives merchants to take lengthy positions, resulting in a closely skewed liquidation map favoring longs over shorts.
Nonetheless, lengthy merchants must be cautious. ZEC has reached ranges much like its 2021 peak, that means almost all holders from the previous 4 years are worthwhile. This might set off heavy promoting strain and sudden lengthy liquidations.
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Moreover, ZEC’s open curiosity has reached an all-time excessive of over $500 million, almost ten instances increased than throughout its 2021 peak. This means that ZEC’s worth motion is now dominated by derivatives exercise, typically leading to sharp volatility.
If ZEC drops to $287, lengthy merchants may face over $42 million in liquidation losses. Conversely, a transfer to $407 may set off round $23 million in liquidations for brief merchants.
3. Digital Protocol (VIRTUAL)
This week, the Virtuals Protocol, an ecosystem for AI brokers, noticed a number of integrations, together with Coinbase Retail DEX listings for all agent tokens.
A optimistic report from a16z on the potential of AI Brokers has additional boosted investor curiosity in VIRTUAL. On the identical time, the x402 token wave has added further momentum, because the Digital protocol serves as a key launchpad for AI Agent tokens.
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In line with Dune knowledge, the variety of day by day lively addresses on Digital doubled in October to over 17,000 wallets. This resurgence has strengthened bullish sentiment amongst lengthy merchants.
If VIRTUAL rises to $1.8, the cumulative liquidation quantity for brief positions may attain $7.8 million.
Nonetheless, the token’s worth jumped over 100% final week—from $0.71 to $1.64—earlier than correcting to round $1.45 on the time of writing. If profit-taking continues and the value drops to $1.29, lengthy liquidations may whole $8.8 million.
The important thing query now’s whether or not the AI Agent and Privateness narratives will lose momentum as shortly as they emerged.
Many analysts warn that the hype round x402 tokens, which at present helps the rally in AI Agent property, may fade simply as shortly because the meme token development. In the meantime, discussions surrounding Privateness cash are already exhibiting indicators of cooling down as October attracts nearer.