Altcoins, will a chain liquidation occur..."Excessive leverage cleanup begins"

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A warning has been issued that the risk of a chain liquidation has increased due to the accumulation of unliquidated long positions in Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL). There is also a projection that Bitcoin could see a correction down to $60,000-$62,000 if its key support level breaks.

According to crypto media outlet BeInCrypto on July 7 (local time), Joao Wedson, founder and CEO of Alphractal, warned that unliquidated long positions dominate the major cryptocurrency markets. He diagnosed that if prices fall further, selling pressure could take over, given the weak upward trend in recent days.

Wedson stated, “Unliquidated long positions are once again dominating Bitcoin, Ethereum, XRP, and Solana.” He added, “If prices are pushed down in the coming hours, selling pressure could take over and trigger new fear and liquidations.” In particular, Ethereum, Solana, and XRP have seen a significant increase in long positions over the past 30 days.

Wedson pointed out that the actual buying strength supporting the recent price increase is weak. He analyzed that prices have risen, but there is a higher reliance on leverage than on spot demand. He explained that even a slight drop could trigger a cascade of stop-losses, increasing selling pressure in both derivative and spot markets.

After being pushed back from the $64,500-$65,000 resistance zone, Bitcoin's key defense line was presented as $62,500-$62,800. Analyst Ted said, “If the daily candle closes below that range, Bitcoin could head towards $60,000.” For XRP, a test of the $1-$1.1 support level was mentioned if liquidations continue. Some analysts also suggested a scenario of recovery to $1.35-$1.5 after long positions are cleared.

For Ethereum, whether it defends $1,750 was presented as a criterion for short-term trends. For Solana, an analysis suggested that if it falls below $80, the risk of chain liquidation could increase to $63-$74. Wedson warned that further short-term declines and market fear could emerge as excessive leverage is unwound.

[Key Article Summary]

-Alphractal CEO warned that unliquidated long positions dominate the Bitcoin, Ethereum, XRP, and Solana markets.

-For Bitcoin, a correction to $60,000-$62,000 was suggested if key support breaks, and for XRP, a test of the $1-$1.1 support level was projected.

-For Ethereum, $1,750, and for Solana, $80 were presented as key price levels that would determine the risk of chain liquidation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*