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.
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.
SOL Exchange Liquidation Map. Source: Coinglass
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.
If SOL manages to recover above $214 this week, more than $1 billion in short positions could be liquidated. Conversely, if SOL falls below $165, around $800 million in long positions would face liquidation.
2. Bittensor (TAO)
In October, Bittensor (TAO) not only rebounded strongly after the market crash on October 11, but also dominated community discussions in the DePIN (Decentralized Physical Infrastructure Networks) sector.
As most altcoins suffered sharp declines, investors became more selective, focusing on projects with stronger fundamentals. TAO emerged as one of the preferred choices.
Recent actions by Grayscale have strengthened institutional confidence in TAO. The company allocated over 33% of its Grayscale Decentralized AI Fund to TAO and filed a Form 10 with the SEC for the Grayscale Bittensor Trust.
TAO Exchange Liquidation Map. Source: Coinglass
From a technical perspective, analyst Crypto Eagles suggested that TAO’s current price structure resembles Zcash (ZEC) during its early growth phase—hinting that TAO could soon experience strong bullish candles with large ranges.
Short sellers may find this development unfavorable. If TAO rallies to $500 this week, they could face losses exceeding $20 million. Conversely, if TAO drops to $381, long traders would face $18 million in liquidations.
3. ChainOpera AI (COAI)
ChainOpera AI (COAI) emerged as one of October’s breakout names. Its market capitalization surged from under $100 million at the beginning of the month to over $5 billion within weeks.
However, this rapid growth came at a cost. COAI has since plummeted nearly 90% from its all-time high of $46. The steep decline encouraged more short positions, creating a severe imbalance on the liquidation map.
Data shows that if COAI rebounds above $7 this week, around $11.5 million in short positions could be liquidated. On the other hand, if it drops to $3.73, about $2.7 million in long positions would be at risk.
COAI Exchange Liquidation Map. Source: Coinglass
Given this setup, short traders should exercise caution. After a 90% correction, buying pressure could return and trigger short squeezes.
With renewed interest from both retail and institutional investors in AI-related crypto projects, many traders believe COAI’s journey isn’t over yet—and that the token could soon recover some of its lost value.
While these altcoins each have unique catalysts that could drive recovery, most of the altcoin market continues to struggle under selling pressure. October paints a complex and risky picture for both long and short positions alike.
