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Extreme fear returned in the final week of March, prompting more aggressive short-selling. However, some altcoins with unique catalysts may pose risks to these short positions.
Traders of Solana ($SOL), Hyperliquid ($HYPE), and Bittensor ($TAO) should pay attention to the risks that could threaten their positions this week.
1. Solana ($SOL)
Solana’s 7-day liquidation map shows a significant imbalance between potential liquidation volumes of long and short positions.
Short positions could face losses of up to $680 million if $SOL rebounds to $96 this week.
$SOL Exchange Liquidation Map. Source: Coinglass">
What factors could support a $SOL recovery this week? Reports from BeInCrypto highlight at least two key drivers.
- First, exchange flows reversed sharply after March 17. Daily outflows reached 700,000 $SOL. This trend suggests that many investors may be accumulating $SOL during the downturn.
- Second, Solana DEX trading volume surged 103% to $138.4 billion over the past week. This marks the highest level in a year.
These factors indicate that demand for $SOL may be increasing. This could put short positions at risk of liquidation.
2. Hyperliquid ($HYPE)
Similar to $SOL, $HYPE’s liquidation map also shows that potential short liquidations dominate.
If $HYPE rises above $42, short liquidations could exceed $60 million.
$HYPE Exchange Liquidation Map. Source: Coinglass">
The escalating tensions between the United States, Israel, and Iran may positively impact demand for $HYPE through the HIP-3 market. This market allows trading of oil, metals, and stock index contracts.
Hyperliquid HIP-3 market data shows approximately $14.39 billion in trading volume over the past 7 days. Open interest stands at around $1.73 billion.
“We believe the next leg for $HYPE depends less on crypto market share and more on HIP-3 opening a 24/7 market for non-crypto assets,” Alea Research stated.
$HYPE’s unique catalyst may allow it to move against the broader negative sentiment in the crypto market. This creates risk for short positions.
3. Bittensor ($TAO)
Bittensor ($TAO) is attracting increasing interest from altcoin investors as they become more selective in portfolio allocation.
A recent report from LunarCrush, a social analytics platform focused on crypto markets, shows that community discussions about $TAO rose 112% over the past 30 days. Mentions reached 3.86 million in just 24 hours.
$TAO engagements are up 112% in the last 30 days.
— LunarCrush (@LunarCrush) March 22, 2026
Not price. Not speculation. Social engagement, the leading indicator that tracks real attention before capital follows.
3.86M engagements in the last 24 hours alone, against a daily average of 1.56M. That's 2.5x the baseline,… pic.twitter.com/wL40Uzzji4
This surge follows Jensen Huang’s mention of Bittensor in a recent podcast. Grayscale also opened a private placement for its $TAO fund. In addition, $TAO subnets are showing growth in both revenue and community engagement.
If this positive sentiment continues, $TAO’s price could benefit.
$TAO Exchange Liquidation Map. Source: Coinglass">
The liquidation map shows that if $TAO rebounds above $307, potential short liquidations could reach $27 million.
Short sellers have valid reasons to expect further downside, given rising macroeconomic concerns and geopolitical tensions. However, without proper profit-taking strategies, these unique catalysts could lead to more complex price volatility.
The post 3 Altcoins Face Major Liquidation Risk in the Final Week of March appeared first on BeInCrypto.