Record Open Interest Signals Liquidation Danger for SOL, XRP, and HYPE

VISI.NEWS | CRYPTO - July 2025 is shaping up to be a month that crypto investors won’t soon forget. Bitcoin surged past the US$ 120,000 mark to hit new all-time highs, turning many patient long-term holders into millionaires.

However, the same month has also witnessed record-breaking liquidation losses. Open Interest (OI) across the crypto market has soared to historic highs, raising the risk of large-scale liquidations amid heightened price volatility—particularly in Bitcoin, Ethereum, and several key altcoins.

1. Solana (SOL)

According to Coinglass, Solana’s Open Interest reached US$7.9 billion in July—the highest since January 2025, when SOL peaked at US$ 294.

The liquidation heatmap for SOL reveals a significant imbalance between long and short positions. Most traders are betting on further short-term gains, heavily favoring leveraged long positions.

As a result, if SOL drops below US$ 150, over US$ 1 billion in long positions could be wiped out—more than 10% below its current price of US$ 167 (at the time of publication).

While Solana’s long-term technicals remain bullish, recent reports from BeInCrypto show FTX offloaded nearly 190,000 SOL—worth around US$31 million—likely due to increasing creditor pressure. The move has raised concerns over market impact.

2. XRP

XRP's Open Interest climbed to US$ 7.6 billion by the third week of July, just US$ 250 million short of its all-time high.

XRP’s liquidation map also highlights an overweight on the long side, with traders expecting upward price movement. However, should XRP fall below US$ 2.50, up to US$ 500 million in long positions could be liquidated.