Altcoins are taking widely diverging paths. Some assets invite concentrated short positions, while others are longed, in expectation of a breakout.
Altcoins are still inviting risky traders to take strong directional bets. According to Alphractal data, there are clear-cut categories of altcoins with minimal long/short ratios and a predominance of short positions.
The most shorted token is BNX, followed by EDGE, NIGHT, OPN, ESP, BERA, and others. Those tokens belong to almost inactive projects and are down more than 99% from their peak, with illiquid trading.
The major risk for those tokens is that short positions may be liquidated by deliberate targeting. Most of the shorted tokens show overall bearish signals, making traders confident in shorting.
Which altcoins show a predominance of long positions?
Chain Opera AI (COAI) is the most longed token according to Alphractal. Over 83% of COAI traders took up long positions, with most of the open interest on Binance. Overall open interest on COAI was just $6.3M, as with other tokens, expecting a breakout.
Other tokens include examples from previous hype cycles, such as the meme token CHILLGUY, the AI agent token ZEREBRO, and even the gaming token MAVIA.
Just like the shorted tokens, those assets were trading near all-time lows, expecting an eventual breakout. Long positions may face smaller risks, as the assets have mostly traded sideways over the past months.
For altcoins as a whole, long liquidations still dominate, due to the overall bearish trend with no relief rallies. Most of the altcoin long liquidations are happening on Binance, which has listed the latest wave of assets.
Altcoin interest as a whole remains low
Altcoin open interest has not recovered from the October 2025 drop. Overall open interest peaked at around $38B, before tanking to the current levels of $12B-$14B.
Open interest for all assets excluding BTC and ETH remained at $14B, down from a local peak of $38B in early October 2025. | Source: CoinalyzeThis level of open interest is the lowest since the summer of 2025, though not the lowest in history. Some traders are still tracking older projects, expecting eventual new developments.
Altcoins still have under 20% market cap dominance, as the market shifted to BTC. Despite this, selected markets remain highly active. Some assets are viewed with caution, as the speculative trading leads to elevated volatility, with the potential for insider price moves or deliberate pumps.
The altcoin market also changed its profile, with more numerous listings, but lower overall value. The consensus is that some tokens may never return, due to a loss of liquidity. Despite this, altcoin open interest is still not down to all-time lows, retaining a relatively high baseline.
Trader behavior with altcoins shows the crypto market is still chosen for risky directional bets, though most are happening in the background, and the main focus is on Bitcoin. As of March 26, the altcoin season index moved up to 51 points, with almost a perfect balance between BTC and other assets.
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Source: https://www.cryptopolitan.com/altcoins-are-splitting-with-extreme-short-and-long-positioning/
