Although the total open interest in the crypto market has declined in October, showing that leveraged exposure among altcoin investors is cooling, several individual altcoins still pose potential risks of major losses.

Which altcoins are they, and what are the driving factors behind them? Here’s a closer look.

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1. Solana (SOL)

Solana (SOL) dropped below $200 in October, fueling growing fear among investors. Many holders have transferred SOL to exchanges, signaling intentions to sell.

A recent BeInCrypto report shows that Solana investors sent 688,000 SOL, worth over $132 million, to exchanges last week.

The 7-day liquidation map also reflects a bearish sentiment, with a wide range of short liquidation levels (displayed on the right-side bar chart) stretching from $193 to over $200.

However, this bearish outlook could backfire, as several data points suggest SOL may see positive momentum this week.

First, Solana is entering a week filled with potentially bullish ecosystem events that may trigger short-term optimism. Second, analyst Lark Davis noted that SOL’s price structure appears to be forming a double bottom, with a potential upside target of $250.

Additionally, BeInCrypto reported that a16z invested $50 million into Jito to strengthen Solana’s MEV infrastructure.

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If SOL manages to recover above $214 this week, more than $1 billion in short positions could be liquida

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Author: Nhat Hoang