Between technical rebounds, rumors of halving, and FOMC, three altcoins are preparing to play their survival against the risk of massive liquidation this week. Here are the unfortunate chosen ones who could set a trap for their traders in the coming days.
ZEC
Since its ATH of $748 reached in November, Zcash has lost about 50% of its value, falling back to around $370. This brutal decline is attracting new investors convinced they can take advantage of a technical rebound, pushing long positions to dangerous levels. According to Coinglass data, if the price were to drop towards $295, nearly $98 million in liquidations would be triggered.
An additional element fuels this optimism: the participation of Zcash founder Zooko Wilcox in a roundtable organized by the SEC on December 15 regarding privacy and financial surveillance. Investors see it as a favorable signal for privacy coins.
ASTER
Aster, the flagship DEX of the BNB Chain, has seen its price drop by more than 60% since September, even causing it to fall below the symbolic dollar mark. However, this weakness could turn into a bullish catalyst.
The team launched an accelerated buyback program on December 8, bringing the daily buyback rate to $4 million. If the price crosses $1.07, short positions could incur losses of up to $32 million according to Coinglass.
TAO
The case of Bittensor (TAO) illustrates another risk: excessive speculation before an expected event. On December 14, the network will experience its first halving, reducing daily issuance from 7,200 to 3,600 TAO, in accordance with its limit of 21 million tokens. This context generates a strong bullish bias among traders anticipating a rise due to increased scarcity.
However, this type of event often comes with a 'sell the news' effect, leading to massive sell-offs just after the announcement. If the price dropped to $243.50, long liquidations could approach $17 million according to Coinglass. In a context where the FED's decision dominates the week, this volatility could amplify and shake the entire crypto derivatives market.
The moral of the story: such altcoin traders who believed they could ride the wave often end up stranded on the beach.
