The onset of March has brought considerable volatility to the cryptocurrency market, largely influenced by unexpected announcements from President Trump regarding potential inclusion of altcoins in the U.S. crypto reserves and new tax regulations. This has led to a dramatic increase in liquidation volumes, which reached $1 billion.

Recent liquidation maps indicate an imbalance within several altcoins, hinting at the possibility of significant liquidations.

XRP (XRP)

The 7-day liquidation heatmap for XRP suggests that should the price fall below $2, total liquidations of long positions could exceed $215 million.

Current trading data reveals that traders maintain a preference for long positions on XRP rather than going short. Presently, XRP trades around $2.33, following a 20% decline since March 3.

On March 3, Whale Alert reported the unlocking of 500 million XRP from escrow, coinciding with Trump’s announcement that XRP would be integrated into the U.S. crypto reserve.

Furthermore, on-chain investigator ZachXBT noted that Ripple co-founder Chris Larsen holds over 2.7 billion XRP, valued at $7.18 billion, with some of these assets transitioning to exchanges recently.

Such developments could raise alarms and trigger a cascade of liquidations.

Solana (SOL)

The 7-day liquidation heatmap for Solana indicates that liquidations of long positions might exceed $437 million if the price drops to $120, which represents an 11% decline from the current $136.3.

On-chain tracking service Lookonchain reported that a wallet associated with FTX/Alameda, containing 3.03 million SOL (valued at $431 million), initiated transfers to Binance, potentially creating additional selling pressure.

“Of the 3.03 million SOL ($431.3 million) unstaked by FTX/Alameda today, 24,799 SOL ($3.38 million) has been deposited to Binance,” Lookonchain reported.

Although the transferred amount is minimal, it raises speculation about further sales of SOL, increasing liquidation risks.

Cardano (ADA)

The 7-day liquidation heatmap for Cardano suggests that if ADA exceeds $0.90, short liquidations could surpass $50 million—indicating a 10% incline from its current price of $0.81.

While ADA’s potential liquidation volume is lower than that of XRP or SOL, it remains the most volatile among them. According to a recent report by Kaiko, ADA showcases the lowest market depth compared to five major altcoins.

“Notably, ADA lags all other assets in the strategic reserve and could experience the most significant price impact,” Kaiko stated.

In situations of market volatility, ADA is likely to exhibit the highest fluctuations, further elevating liquidation risks.

Liquidation maps continuously refresh in response to price dynamics. Nevertheless, the current data indicates a market sensitive to unexpected news, amplifying risks for short-term traders, particularly those utilizing high leverage.