📊 Leverage Structure of Altcoins Changing Direction: Important Signal for Traders

The altcoin market has recently begun to show notable changes in leverage structure, especially the shift between Long and Short positions – a factor often signaling strong squeezes.
1. The altcoin groups "weaker": Dense Long accumulation, increased risk of Long Squeeze
In some tokens like HYPE, XMR, ASTER, the Short positions have been almost wiped out by the market. The remaining on the order book mainly are:
• Numerous high-leverage Long orders accumulated
• Leverage ratio heavily tilted towards Long
• Long liquidity concentrated just below the current price
➡️ This makes these groups more susceptible to triggering a Long liquidation chain (Long Squeeze), leading to a price trend weakening in recent days.
2. The altcoin groups with a chance to "bounce back": Dense Short accumulation, prone to Short Squeeze
Conversely, tokens like VIRTUAL, FIL, BON, PEPE are demonstrating a completely different leverage structure:
• Only large Short positions remaining densely packed
• Short liquidation levels just above the price
• A slight pull can activate the "short forcing" effect
➡️ This group of altcoins has a high probability of bouncing back because they are positioned in the market’s vulnerable squeeze zone.
3. Summary – Signals for traders
Weak group (HYPE, XMR, ASTER):
→ Be cautious when Longing, prioritize observation due to high Long Squeeze risk.
Potentially strong group (VIRTUAL, FIL, BON, PEPE):
→ Susceptible to technical rebound waves caused by Short Squeeze.