3 Altcoins Facing Liquidation Risks in the Third Week of December

Core Viewpoint - The crypto market sentiment remains dominated by fear, particularly affecting short positions, but specific altcoins like Solana (SOL) and Cardano (ADA) have catalysts that could lead to short liquidations. Group 1: Solana (SOL) - The potential liquidation volume of short positions for SOL is twice that of long positions, indicating a significant risk for short traders [1] - If SOL rises to $147, short traders could face losses of up to $1 billion, while a drop below $120 could lead to long liquidations of around $500 million [2] - SOL ETFs have seen seven consecutive days of positive inflows, with the Bitwise SOL ETF maintaining positive inflows for 33 days and holding over $600 million worth of SOL, suggesting strong institutional demand [3] - SOL has established strong support around the $130 level, and positive news regarding XRP's DeFi expansion on Solana has improved market sentiment, providing grounds for a potential recovery [4] Group 2: Cardano (ADA) - Negative market sentiment has led to increased capital allocation and leverage on short positions among ADA derivatives traders, raising the total short liquidation volume [5] - If ADA rises to $0.45, short positions could incur losses of up to $50 million, while a drop to $0.35 could result in long liquidations of approximately $19.5 million [5] - Positive sentiment surrounding the Midnight project, a new blockchain focusing on privacy through zero-knowledge proof technology, is a key factor for ADA short traders to consider [6] - The NIGHT token associated with the Midnight project has surged over 150% in the past week, driving demand for ADA, with DEX trading volume exceeding 85 million ADA in the last five days [7]