The cryptocurrency market entered the first week of February amid an increasingly intense standoff between bulls and bears. While bearish pressure continues to dominate broader market structure, price action is approaching several technically sensitive zones, prompting opportunistic positioning on both sides.
As a result, volatility has become more erratic, and liquidation losses are expanding across both long and short positions. Against this backdrop, several altcoins stand out due to their concentrated leverage and asymmetric risk profiles—most notably Solana (SOL), Hyperliquid (HYPE), and Tron (TRX).
Solana (SOL): Leverage Builds Around a Long-Term Support Zone
At the start of February, Solana briefly fell below the $100 level, reflecting the broader wave of negative sentiment across digital assets.
Seven-day liquidation heatmaps show short-side clusters dominating, indicating that leveraged traders are largely positioned for further downside. However, the area around $100 has acted as a major structural support for nearly two years, making aggressive short positioning near this level inherently risky.
Historical data suggests that heavy leverage accumulation near long-term support often increases the probability of sharp wick-driven reversals, capable of triggering liquidations on both sides.
On-chain metrics add nuance to the picture. Data cited by Coinphoton shows a surge in newly created Solana addresses during January, at times exceeding 10 million addresses per day. Meanwhile, ecosystem-specific catalysts—including meme coin launchpad activity, expansion of the USD1 stablecoin, and privacy-focused initiatives such as GhostSwap—continue to provide localized demand.
According to CoinGlass, a recovery above $113 could expose nearly $500 million in short liquidations, while a decline toward $86 could trigger approximately $142 million in long liquidations, underscoring the asymmetric risk surrounding current price levels.
Hyperliquid (HYPE): Relative Strength Meets Fragile Liquidity
Hyperliquid (HYPE) remains one of the few altcoins still up roughly 50% from its January 21 low, even as much of the altcoin market has continued to set lower lows.
Liquidation data shows a relatively balanced distribution between long and short exposure. Around the current $31 price zone:
A move toward $35.5 could liquidate roughly $80 million in short positions.
A drop toward $26 could result in a similar $80 million in long liquidations.
Despite its relative outperformance, analysts caution that counter-trend strength can become a risk factor when broader market liquidity is insufficient. Coinphoton reports have highlighted notable capital outflows, raising questions about the sustainability of any extended upside move.
Still, HYPE maintains several internal supports, including a 90% reduction in monthly team token allocations and continued trading demand for metals-related pairs on the Hyperliquid platform.
Technically, HYPE has printed four consecutive “spinning top” candles, signaling indecision and compressed volatility—often a precursor to sharp directional expansion, with liquidation risk rising accordingly.
Tron (TRX): Sentiment Pressure Meets Persistent On-Chain Activity
Tron (TRX) has recently faced renewed scrutiny following allegations by Zeng Ying (Ten Ten), who claims to be a former partner of Justin Sun. She alleged that TRX was manipulated in its early stages through coordinated trading activity involving multiple Binance accounts.
While these claims remain allegations, such narratives can amplify negative sentiment in an already fragile market environment, increasing the risk of reflexive selling.
From a derivatives perspective, short-term traders appear biased toward further downside. Liquidation heatmaps show short-side dominance, with up to $29 million in potential short liquidations if TRX rebounds above $0.31.
Counterbalancing this sentiment, Tron Inc. (NASDAQ: TRON) recently disclosed the purchase of 173,051 TRX at an average price of $0.29, lifting its total holdings to over 679.2 million TRX. Additionally, Tron’s weekly active addresses have grown steadily for years, now reaching approximately 24.68 million, suggesting persistent network usage despite market turbulence.
Conclusion: High Volatility Zones Increase Liquidation Risk
While each of these altcoins carries its own narrative and structural drivers, they share a common characteristic: they are trading in high-volatility zones where leverage concentration is elevated.
According to The Kobeissi Letter, total crypto market liquidations have exceeded $5 billion over the past four days, marking the largest liquidation wave since October 10. Sustained liquidation pressure may gradually exhaust retail capital, potentially leading to a prolonged phase of range-bound price action and reduced liquidity.
For now, market conditions remain highly sensitive to positioning, making risk management a central concern across the altcoin space.
This article is for informational purposes only and reflects personal analysis. It does not constitute investment advice. Readers should conduct their own research and assume full responsibility for any investment decisions.
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