The first week of March 2025 has been volatile for the crypto market, with major liquidations shaking investor confidence. Prices are swinging up and down like a rollercoaster, and traders are scrambling to keep up. Capital flows have been affected by President Trump’s unexpected news, such as his plans to include altcoins in US crypto reserves and his new tax policies. Because of this, the volume of liquidations rose to $1 billion.
There is an imbalance shown by the liquidation maps for several altcoins. This could be a sign that big companies might have to go out of business.
1. XRP
Source: TradingView
Based on the XRP 7-day liquidation heatmap, if the price falls below $2, there could be more than $215 million in long liquidations.
The data from the charts shows that traders are currently favouring to be long on XRP rather than short it. Right now, XRP is worth about $2.33. It has lost 20% of its value since March 3.
Whale Alert reported that 500 million XRP were released from escrow on March 3. This happened right after Trump said that XRP would be added to the US crypto reserve.
On-chain investigator ZachXBT also found that Chris Larsen, co-founder of Ripple, still has more than 2.7 billion XRP, which is worth $7.18 billion. In January 2025, addresses connected to him sent more than $109 million worth of XRP to exchanges.
These events could cause worry and could even lead to a liquidation event.
2. Solana
If Solana (SOL) falls to $120, the 7-day liquidation heatmap shows that long liquidations could reach more than $437 million. As of writing, Its price would drop another 11% from where it is now, at $135.9.
Source: TradingView
A tracking account for the blockchain called Lookonchain recently said that a wallet connected to FTX/Alameda that holds 3.03 million SOL, which is worth $431 million, has started sending SOL to Binance.
“Of the 3.03 million SOL ($431.3 million) that FTX/Alameda unstacked today, $3.38 million ($24,799 SOL) has been sent to Binance,” Lookonchain said.
Even though the amount sent to Binance is less than 0.1% of all holdings, investors may think that more SOL will follow. This could make people want to sell, which could lead to more liquidations.
3. Cardano or ADA
The 7-day liquidation heatmap of Cardano (ADA) shows that if ADA goes above $0.90, short sales could also reach more than $50 million. This is almost 10% more than its current price of $0.81.
Source: TradingView
Though its liquidation volume is less than XRP or SOL, among the three it is the most volatile. Kaiko’s most recent report says that among the five altcoins included in the US crypto reserve, ADA has the least market depth.
Market depth is a measure of liquidity that shows how well the market can handle large buy or sell orders without causing big price changes.
Kaiko said, “Notably, ADA is behind all other assets in the strategic reserve and could see the biggest price impact.”
