Joao Wedson, founder and CEO of Alphractal, issued a sharp warning on July 7 about a dangerous threat facing major cryptocurrencies. According to reports from Alphractal, Wedson's diagnosis is direct: unliquidated long positions now dominate Bitcoin, Ethereum (ETH), XRP, and Solana (SOL) after a recent weak advance. The analyst warns that any slip in the coming hours could hand control to the bears, potentially triggering a fresh wave of fear and liquidations across the entire crypto market.
An unliquidated long is a leveraged bet that a price will rise, one that has not yet closed or been forced to sell. As reported by Alphractal, Wedson warns that these positions now dominate the market for the largest cryptocurrencies. The situation is especially delicate for ETH, SOL, and XRP, which saw a massive buildup of longs over the past 30 days. The core problem, according to Wedson, is that the recent rally lacks genuine conviction, with prices climbing yet underlying buying strength remaining weak.
Recent market data confirms the warning's urgency, with significant liquidation events occurring across major exchanges. Bitcoin (BTC) experienced approximately $240 million in liquidations over the past 24 hours, with 61.83% being short positions. Similarly, Ethereum (ETH) saw $130 million in liquidations, where shorts accounted for 69.94% of the total. This surge in liquidations validates Wedson's concerns about the concentration of unliquidated long positions, particularly as they represent leveraged bets that could amplify any market correction.
According to Alphractal's analysis, the imbalance of longs implies a high risk of bearish volatility. For Bitcoin, the main impact would be a correction to $60,000-$62,000, with that zone holding a high concentration of vulnerable longs. However, the US Strategic Bitcoin Reserve now holds 328,372 BTC, offering a long-term institutional floor. Ethereum faces similar setup risks, with a cascade potentially pushing it to test lower support levels amid heightened volatility due to its correlation with Bitcoin. Recent market data shows Bitcoin trading at $62,791.02 with a market cap of $1,259 million, while Ethereum trades at $1,755.55 with a market cap of $211.41 billion.
XRP appears vulnerable to a dragged-down decline under Wedson's scenario, with a wave of liquidations potentially testing support near $1.00 to $1.10. However, some analysts project XRP could stabilize and climb toward $1.35 to $1.50 once longs clear. Solana carries elevated cascade risk toward $63 to $74 if it breaks below $80, with token unlocks adding further pressure. Nonetheless, analysts see strong support near $65 to $70, projecting a recovery toward $90 to $100 afterward. Recent market data shows Solana trading at $78.08 with a market cap of $45.42 billion.
