Altcoin Traders Take Bigger Hit as $735M in Crypto Longs Are Liquidated

A broad selloff across the crypto market on Tuesday triggered nearly $735 million in liquidations, with long positions overwhelmingly affected—signaling potential signs of market capitulation.

According to CoinGlass data, Ether (ETH) and XRP traders bore the steepest losses, surpassing even Bitcoin (BTC) liquidations—an unusual dynamic that reflects rising altcoin leverage in recent weeks. ETH futures saw $152.78 million in liquidations, followed by $88.58 million for XRP. Bitcoin, despite its larger market cap and deeper liquidity, came in third at $65.29 million.

The liquidation wave wiped out $625.5 million in long positions, as prices slipped just a few percentage points—underscoring the impact of high leverage, particularly among retail traders in altcoins.

Solana’s SOL and Dogecoin (DOGE) were also hit hard, registering $41 million and $40 million in liquidations, respectively. Even smaller DeFi tokens such as SPK and PUMP saw over $10 million in positions erased.

The downturn came with no clear catalyst, though analysts point to profit-taking near key technical resistance levels as a likely driver. ETH had recently approached the $4,000 mark, and BTC had surged above $118,000, prompting large holders to lock in gains.

At the time of writing:

• ETH is down 3.6%, trading around $3,540
• XRP has fallen 6% to $3.25, extending its weekly loss beyond 12%
• BTC remains more resilient, dipping just under 2% to around $116,800

Crypto liquidations occur when traders using leverage have their positions forcibly closed due to insufficient margin. These events can accelerate volatility and contribute to cascading price moves during rapid selloffs.

Traders closely monitor liquidation data to assess sentiment shifts. Significant long liquidations may suggest panic selling and potential local bottoms, while short liquidations often precede sharp upward squeezes. Paired with funding rates and open interest metrics, liquidation trends can offer valuable insights into market positioning and potential reversal zones in overleveraged environments.