In its latest report, Alphractal made important observations about the altcoin market, focusing on the activity of the assets ENA and TRUMP.
High Speculation Levels in the Altcoin Market
According to the report, ENA and TRUMP stand out among the altcoins with the highest leverage in the market. Both assets record the highest open interest/market cap ratios relative to their market capitalization, signaling high speculation and risk.
Key Market Indicators
The report also noted that ENA, OKB, ARB, and MKR recorded their highest Liquidation/Open Position ratios in the last 24 hours. This ratio is considered a key indicator of market volatility and mass liquidations, as it indicates how much of an open position is liquidated quickly.
Investor Recommendations
Alphractal argued that for more cautious investors, staying away from these altcoins could reduce liquidation risk. The company cautioned that these assets, fueled by high speculation, are more susceptible to volatility.
Thus, Alphractal's analysis highlights the risks associated with investing in certain altcoins and urges caution in light of the current market situation.
