Foreign media: The recent expansion of the encryption market has been limited, but the leverage of mainstream assets continues to increase. The latest market assessment by Chief Executive Officer Alphractal states that BTC, ETH, XRP and SOL have accumulated a large number of open silos, which makes the market more sensitive to reversals.

Multiple-head positions continue to accumulate.

According to the article, over the past month, there has been a marked increase in the number of multiple positions of several major encryption assets. The relevant bets are based on the expectation that prices will continue to rise, but in the absence of a strong breakthrough, such slots are more vulnerable to short-term fallback.

When most traders in the market are concentrated in the same direction, when prices are weaker, the silo pressure tends to increase rapidly and encourage further volatility.

ETH, SOL, XRP short-term risk higher

According to this assessment, the risk is not limited to a single currency. In the event of a more pronounced fall in the market, the pressure on liquidation could spread from the derivatives market to the spot market, creating a chain of sale.

In several mainstream assets, ETH, SOL and XRP are considered to be at higher short-term leverage risk because of the concentration of multiple positions over bitcoin. At the same time, the article notes that this does not mean that there will be a return, but that the market is more sensitive to negative price dynamics.

  • Assets include BTC, ETH, XRP and SOL
  • The source of the risk is the continued accumulation of unliquidated multiple warehousing positions
  • The ripple effects may cover derivatives and spot markets

After leveraging, market or more robust.

According to the article, such cases are not uncommon in the encrypted market. Over-leverage usually magnifies short-term fluctuations and may also result in speculative positions being cleared back.

In its judgement, if over-leveraging is gradually digested, market structures may instead become healthier and leave room for subsequent repairs. Prior to this, the market could still face further downward pressure if more than one start to concentrate.