3 altcoins face major liquidation risk in the final week of March

Extreme fear returns in the last week of March, leading to a surge in short position setups on the market. However, some altcoins with unique driving factors pose significant risks to short positions.

Traders trading Solana (SOL), Hyperliquid (HYPE), and Bittensor (TAO) should pay special attention to variables that could directly impact their strategies this week.

Solana (SOL)

The 7-day liquidation map of Solana shows a clear imbalance between potential long and short liquidations, with risk pressure leaning toward the sell side.

In a scenario where SOL recovers to $96, short positions could incur losses of up to $680 million.

SOL Liquidation Map | Source: Coinglass Two main drivers support SOL’s recovery outlook. First, the on-chain funds have reversed sharply since March 17, with daily net withdrawals of about 700,000 SOL — signaling accumulation during the correction phase.

Second, trading volume on Solana’s DEXes surged 103% to $138.4 billion last week, the highest in a year. This activity reflects increasing demand, which also raises the risk of liquidations for short positions.

Hyperliquid (HYPE)

Similar to SOL, HYPE’s liquidation map also shows liquidation pressure mainly concentrated on short positions.

If HYPE’s price exceeds $42, the total short liquidation value could surpass $60 million.

HYPE Liquidation Map | Source: Coinglass An important supporting factor comes from the geopolitical context. Escalating tensions between the US, Israel, and Iran could boost demand for HYPE through the HIP-3 market — a platform enabling trading of oil, metals, and stock index contracts.

Over the past 7 days, the HIP-3 market recorded about $14.39 billion in trading volume, with open interest (OI) reaching $1.73 billion.

According to Alea Research, HYPE’s next growth driver is likely no longer dependent on the cryptocurrency market share but on HIP-3 opening a 24/7 trading market for non-crypto assets. This could help HYPE defy the overall trend and put pressure on short positions.

Bittensor (TAO)

Bittensor (TAO) is emerging as an attractive destination for capital flow as altcoin investors become more cautious and selective in their portfolio allocations.

Data from LunarCrush shows a 112% increase in TAO discussion over the past 30 days, with 3.86 million mentions in just 24 hours — reflecting a strong rise in community interest.

This momentum is reinforced by Jensen Huang mentioning Bittensor in a recent podcast, along with Grayscale launching a private placement for the TAO fund. Meanwhile, the project’s subnets are also seeing growth in both revenue and engagement levels.

TAO Liquidation Map | Source: Coinglass If positive sentiment continues, TAO’s price could be significantly supported. In a scenario where TAO surpasses $307, potential short liquidation value could reach $27 million.

Although short positions still have a basis amid rising macro risks and geopolitical tensions, poor profit management discipline could lead traders to face more complex price volatility, especially as individual driving factors continue to exert influence.