Three altcoins—XRP, SOL, and AVAX—are experiencing heightened liquidation pressures as their prices approach critical support levels during the second week of December. Market participants are monitoring these assets closely due to rising leverage and declining trading volumes.
- Over $180 million in long positions across XRP, SOL, and AVAX are at risk of liquidation
- XRP's liquidation threshold: $0.58, SOL: $102.30, AVAX: $34.15
- Trading volume declined 35–40% week-over-week for the three altcoins
- Hedge funds reduced altcoin long exposure by up to 15% in recent days
- DeFi platforms using XRP and AVAX as collateral reported 20% more liquidation events
- Market-wide risk of cascading sell-offs if support levels are breached
Bitcoin's recent pullback has triggered a cascade of margin calls across the altcoin sector, with XRP, SOL, and AVAX emerging as the most vulnerable. Data indicates that over $180 million in long positions across these three tokens are currently at risk of liquidation, with XRP's liquidation threshold set at $0.58, SOL at $102.30, and AVAX at $34.15. These price levels represent key technical supports that, if breached, could accelerate downward momentum. The liquidation risk stems from a surge in leveraged trading activity earlier in the month, when all three altcoins saw price rallies exceeding 25%. With market sentiment turning cautious, the long positions now face margin pressure as stop-loss orders begin to activate. A sharp decline in trading volume—down 40% week-over-week for XRP and 35% for AVAX—further complicates price stability, reducing market depth and increasing slippage. Institutional traders and algorithmic systems are adjusting exposure, with several hedge funds reducing long exposure to altcoins by up to 15% in recent days. This shift reflects broader risk aversion ahead of major economic data releases and potential regulatory developments in early January. Analysts warn that if any of the three altcoins fall below their liquidation thresholds, cascading sell-offs could trigger broader market corrections. The impact extends beyond individual tokens, affecting DeFi protocols and staking platforms that rely on these assets for collateral. Platforms backing XRP and AVAX have reported a 20% increase in liquidation events over the past 72 hours, signaling growing stress in the decentralized finance ecosystem.