3 Altcoins at Risk of Major Liquidations in July

Investors will likely remember the market events of July 2025, which saw Bitcoin surge to a new all-time high above $120,000. Many patient Bitcoin holders became millionaires this month.

However, July also witnessed record-setting liquidation losses. Open Interest (OI) volumes hit historic highs. Besides BTC and ETH, several altcoins now pose significant liquidation risks to derivatives traders, as price volatility increases.

1. Solana (SOL)

Data from Coinglass shows that Solana’s Open Interest in July reached $7.9 billion, its highest level since January 2025, when SOL peaked at $294.

The liquidation map for SOL reveals a clear imbalance between long and short positions. Most traders are betting on further short-term price increases, allocating capital and leverage to long positions.

As a result, the total accumulated long-side liquidation volume could reach $1 billion if SOL drops below $150. This would represent a decline of over 10% from the current price of $167 at the time of writing.

Although Solana flashed a bullish five-year signal, BeInCrypto recently reported that FTX unstaked nearly 190,000 SOL, worth around $31 million. This move came amid rising creditor pressure, sparking fears of market impact.

2. XRP

XRP’s Open Interest hit $7.6 billion entering the third week of July. That’s just $250 million below its highest OI level in January.

The liquidation map for XRP also shows short-term traders are confident that the price will continue rising. This is evident from the imbalance between cumulative long and short liquidations.

The data suggests that up to $500 million in long positions could be liquidated if XRP falls below $2.5. Historical price action shows XRP often experiences wide daily ranges, 20% to 30% moves.

Furthermore, recent analysis suggests XRP’s rally may be losing momentum, as some traders could be preparing to take profits.

3. Hypeliquid (HYPE)

In July, Hypeliquid (HYPE) set a new all-time high in Open Interest at $2.1 billion. The Long/Short volume ratio — as well as the Long/Short ratio among top accounts on Binance and OKX — exceeds 1, signaling short-term bullish sentiment.

Meanwhile, HYPE’s price has climbed for six consecutive days. It hit a new high of $49.8 today. Traders are still aggressively pursuing long positions, which increases liquidation risk if a pullback occurs.

The liquidation map shows that over $60 million in cumulative long positions could be liquidated if HYPE drops below $43.

In July, HYPE’s price closely mirrored Bitcoin’s. With BTC now exceeding $122,000, any correction in Bitcoin could trigger a deeper retracement in HYPE, leading to large-scale liquidations.

The Crypto Derivatives Market is Hotter Than Ever

According to Coinglass, Bitcoin’s futures trading volume last week was over 10 times its spot trading volume. The Perpetual Futures/Spot Volume Ratio reached 11.5, the highest in history.

Additionally, the total crypto market Open Interest hit a new all-time high of over $187 billion on July 14. Open Interest represents the total number of outstanding contracts yet to be settled.

It reflects investor participation in both altcoins and Bitcoin at the moment.

These figures suggest that traders are engaging more with derivatives than spot markets despite the bull market. This is a warning sign that major liquidation events may be on the horizon.

“In the past 24 hours, 127,894 traders were liquidated. Total liquidations reached $732.59 million,” Coinglass reported.

At the time of writing, 24-hour liquidation volumes have already surpassed $700 million, and most losses continue to fall on short positions.