Solana (SOL)

Solana has recently shown signs of weakness, falling below the $200 mark and prompting concern among investors. Data indicates a potential sell-off, with holders transferring 688,000 SOL—worth more than $132 million—to crypto exchanges last week. The liquidation map reflects this negative sentiment, showing a dense cluster of short liquidation levels between $193 and $200.

However, this outlook isn’t set in stone. A series of bullish ecosystem events could spark short-term optimism this week. Analyst Lark Davis also noted that SOL’s price chart appears to be forming a double bottom pattern, which could set a potential target of $250. Furthermore, a16z’s recent $50 million investment into the Jito project to bolster Solana’s MEV infrastructure adds to the positive case. The stakes are high: if SOL breaks above $214, over $1 billion in short positions could be liquidated. Conversely, a drop below $165 would threaten nearly $800 million in long positions.

Bittensor (TAO)

Bittensor has become a focal point in discussions around Decentralized Physical Infrastructure Networks (DePIN) after a strong recovery from a recent market-wide correction. As investors grew more selective, TAO emerged as a project with solid fundamentals, attracting significant attention. This confidence was reinforced by Grayscale, which allocated over 33% of its Decentralized AI Fund to TAO and filed with the SEC to create a Grayscale Bittensor Trust.

From a technical perspective, analysts at Crypto Eagles suggest TAO’s current price structure resembles the early growth phase of Zcash (ZEC), hinting at a potential major upward move. Such a development would be bad news for short sellers. If TAO’s price climbs to $500 this week, it could trigger over $20 million in short liquidations. On the other hand, a decline to $381 would place $18 million in long positions at risk.

ChainOpera AI (COAI)

ChainOpera AI experienced a meteoric rise, with its market capitalization jumping from under $100 million to over $5 billion in just a few weeks. This rapid ascent was followed by a sharp reality check, as COAI’s price plummeted almost 90% from its peak of $46. The dramatic decline led to a surge in short positions, creating a significant imbalance on the liquidation map.

This situation presents a major risk for short traders. After a 90% correction, buying pressure could easily return and trigger a short squeeze. Renewed interest from retail and institutional investors in AI-focused crypto projects also suggests COAI’s momentum may not be entirely spent. If the token manages to rally above $7 this week, it could liquidate around $11.5 million in short positions. However, if the price falls further to $3.73, approximately $2.7 million in long positions would be at risk.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice, investment advice, or any other sort of advice. You should not treat any of the website’s content as such. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.