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XRP, Dogecoin, Ethereum, Binance Coin, and Hyperliquid carry billions in leveraged positions at risk of liquidation this September.
Even minor price dips can trigger cascading liquidations, wiping out hundreds of millions in long positions.
Macro data, overbought signals, and weak fundamentals are amplifying liquidation risks across top altcoins.
The cryptocurrency market has entered a highly volatile phase in September 2025. Several altcoins are carrying large leveraged positions, making them vulnerable to liquidation if prices move against traders. Liquidation happens when an exchange automatically closes a trader’s position as losses exceed collateral. With billions of dollars in open interest spread across altcoins, even a small price move can wipe out large sums.
This month, some of the biggest names in the altcoin space are showing signs of high liquidation risk. Data from derivatives platforms and recent market activity suggest that coins such as XRP, Dogecoin, Hyperliquid, Ethereum, and Binance Coin are under pressure.
In simple terms, liquidation risk refers to the possibility that long or short positions will be closed by exchanges due to price swings. When many traders use leverage, even small dips can result in forced liquidations. High open interest, weak technical support levels, and overbought market conditions increase the chance of such events. September has already witnessed billions in liquidations across altcoins, proving just how quickly sentiment can turn.
XRP is one of the most vulnerable tokens this month. If the price dips below $2.60, long positions worth around $467 million face liquidation. Traders had turned bullish after XRP gained about 8% recently, breaking out of a downward trendline. However, despite the optimism, fundamentals are weakening. Binance reserves of XRP are at record highs, suggesting large amounts of supply on exchanges. At the same time, activity on the XRP Ledger has slowed, and global search interest has declined.
These factors raise doubts about the sustainability of the rally. If resistance near $3.18 to $3.20 proves too strong, traders could see heavy losses as leveraged long positions are wiped out.
Also Read - Cryptocurrency Comeback: Key Drivers Behind the Market's Latest Surge
Dogecoin also stands at a critical point. If its price falls toward $0.20, about $354 million worth of long positions are in danger. Much of this exposure comes from speculative bets fueled by hype, including talk of a potential DOGE exchange-traded fund.
The coin has seen high leverage build up in derivatives markets, but technical charts show overbought signals. In some timeframes, the relative strength index has moved into risky territory, leaving Dogecoin vulnerable to a sudden pullback. If broader market conditions turn negative, a quick drop could trigger cascading liquidations.
Hyperliquid, known by the ticker HYPE, is another token under stress. After hitting new highs, it carries long exposures of about $111 million. If prices fall back toward $42, many of these positions will be liquidated.
The project gained attention for its plan to launch a native stablecoin called USDH, which sparked optimism and pushed prices up. However, rapid gains often attract profit-taking, and any disappointment around the stablecoin launch could reverse sentiment. The sudden surge in valuations means a correction would not be surprising, leaving leveraged traders at high risk.
Among all altcoins, Ethereum shows the largest liquidation exposure. If the price drops toward $4,046, more than $8.8 billion in long positions could be liquidated. Ethereum also has significant short positions at risk if the price rallies sharply, making it one of the most leveraged assets in the market right now.
Ethereum’s on-chain data reveals that much of its circulating supply is currently in profit. This increases the chance that holders might sell to lock in gains, creating pressure on the price. Additionally, staking and unstaking flows have created volatility, with large queues for withdrawals. Such conditions make Ethereum extremely sensitive to both technical breakdowns and macroeconomic shocks.
Binance Coin, or BNB, has also entered a risky zone. If prices fall toward $818, around $189 million worth of long positions could be liquidated. Open interest in BNB derivatives has surged to about $1.72 billion, reflecting a significant build-up of leveraged bets.
Historically, when Binance Coin sees large spikes in open interest, corrections of 7% to 15% often follow. This makes current conditions particularly dangerous for traders who have taken heavy long positions. The risk of sudden price swings is amplified when so much leverage is concentrated in one direction.
September has already seen proof of how quickly liquidations can unfold. A market dip of just 5% to 8% across altcoins erased nearly $4 billion in long positions. In another 24 hours, $351 million in long liquidations took place, with XRP, Dogecoin, and Hyperliquid leading the losses. Ethereum has also been at the center of liquidation events, with single-day losses of more than $90 million.
These figures show that the market does not need a crash to wipe out billions. Even modest corrections are enough to trigger cascading liquidations when leverage is this high.
The macro environment is playing a key role in this heightened risk. Inflation reports such as the Consumer Price Index and Producer Price Index in the United States have made traders highly sensitive to interest rate expectations. Any surprise from the Federal Reserve can quickly shift sentiment.
On the technical side, many altcoins are overbought, with indicators like RSI flashing warning signals. Resistance levels are also being tested. XRP, for example, faces strong resistance near $3.20, while Dogecoin’s overextended run leaves it vulnerable. If these levels fail, support breaks could unleash a wave of liquidations.
Additionally, fundamentals such as high exchange reserves and declining network activity suggest underlying weakness. XRP’s reserves on Binance and lower transaction activity are clear examples. These underlying weaknesses often set the stage for sharper corrections.
The first scenario involves a sharp pullback triggered by macroeconomic shocks or the failure of resistance levels. In such a case, long positions in XRP, Dogecoin, Hyperliquid, and Binance Coin would be the first to suffer.
A second scenario is a sideways market where resistance holds. Traders betting on breakouts could gradually exit, leading to smaller but steady liquidations.
The third possibility is an upside breakout driven by strong news or institutional buying. This would put short positions at risk. However, given current conditions, downside liquidation risk appears more significant than a short squeeze.
There is a chance that altcoins underperform Bitcoin. If capital rotates into Bitcoin as a safer asset, altcoins could suffer, leading to long liquidations in weaker projects.
While several tokens are facing pressure, some altcoins are less exposed. Coins with smaller leverage build-up, lower open interest, and stronger fundamentals are better positioned to handle volatility. Altcoins tied to core infrastructure, such as decentralized finance protocols or oracle networks, tend to be more resilient than meme-based or hype-driven projects.
Ethereum and Binance Coin, despite their large exposure, at least have deep liquidity and institutional interest. Smaller altcoins with weaker fundamentals may suffer even more if broader market sentiment turns negative.
For XRP, the $2.60 support and $3.20 resistance are critical. Falling below support could trigger massive long liquidations. For Dogecoin, the $0.20 level remains a danger zone. Hyperliquid must stay above $42 to avoid wiping out $111 million in positions. Ethereum’s key threshold is $4,046, while Binance Coin faces heavy risk if prices move toward $818.
Also Read - Ethereum Could Be Set for a Major Breakout: Here’s Why
The altcoin market is sitting on a knife-edge in September 2025. Billions of dollars in long positions across XRP, Dogecoin, Hyperliquid, Ethereum, and Binance Coin are vulnerable to liquidation. Technical signals, macroeconomic uncertainty, and weak fundamentals all point toward elevated risk.
Although these cryptocurrencies persist as some of the best altcoins to buy, most of them can enter periods of volatility at any time. This turns out to be one of the biggest risk to investor assets as well as their market positions.
Already this month, billions have been lost in liquidations from small corrections. With leverage still building up, traders face a precarious situation where any sudden move could set off another chain reaction. Until support levels prove strong, the risk of large liquidations will continue to hang over the altcoin market.
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.
