Liquidation Risks: MATIC, SOL, and DOGE Face Volatility

The crypto market experienced its first weekly decline after five weeks of gains. This downturn is generating profit-taking pressure and increased short-term bearish sentiment, raising the possibility of significant liquidations across several altcoins.

Here's a look at three altcoins that currently show elevated risk for traders using leverage.

1. MATIC

Analysis of MATIC's 7-day liquidation map reveals a considerable imbalance between long and short positions. The data indicates a higher volume of accumulated short positions compared to long positions. This suggests a prevailing expectation that MATIC's price may decline in the near term.

This bearish outlook is likely influenced by recent price action. If MATIC rises unexpectedly to $0.85, data suggests that a substantial amount of short positions could face liquidation.

2. Solana (SOL)

The liquidation map for Solana also indicates a concentration of potential liquidations on the short side. Many analysts see Solana around the $20.00 level, but if SOL climbs higher this week to $25.00, many short positions could be liquidated.

Increased interest from institutional investors and continued development on the Solana network provide more opportunity for price increases, potentially squeezing traders betting against SOL.

3. Dogecoin (DOGE)

Dogecoin, the popular meme coin, shows similar liquidation dynamics. The liquidation map data shows that many traders are anticipating a price correction for DOGE.

If DOGE reaches $0.09, short positions could face liquidation.

Keeping up with project development, community updates, and social media trends can help leveraged traders better assess potential risks in DOGE and avoid liquidations.