Short-term Derivative traders have maintained long positions in several altcoins since the end of December. However, without strict stop-loss plans, these positions could face liquidation risks as early as January.
Which altcoins are at risk and why could they cause significant liquidation losses? The following analysis explains in detail.
1. Solana (SOL)
Solana 's 7-day liquidation map reveals a serious imbalance. Accumulated buy liquidation is significantly larger than short-term liquidation.
Buyer traders have a reasonable basis to hold SOL positions at this stage.
A BeInCrypto report notes that January has historically been a strong month for SOL's price performance. Additionally, the bullish RSI divergence has confirmed expectations of a potential recovery.
SOL exchange liquidation map. Source: CoinglassLong positions may yield unrealized profits in the coming days. However, without a profit-taking plan, these long positions could become vulnerable.
Data from SoSoValue shows that the SOL ETF just recorded its weakest weekly inflow since launch. Net Capital last week totaled only $13.14 million. This represents a decrease of over 93% compared to the nearly $200 million in its launch week.
Total net inflow of funds into the SOL Spot ETF. Source:SoSoValueAlthough no week has recorded negative net cash flow so far, this sharp decline strongly signals weakening ETF demand for SOL . This trend could put pressure on SOL prices in early January.
Therefore, buy positions require caution. If SOL falls to $110, accumulated buy liquidation could exceed $880 million.
2. Zcash (ZEC)
Similar to SOL, ZEC 's liquidation map shows traders allocating significant Capital and leverage to long positions.
ZEC , locked in Shielded Pools , rebounded in late December. The price of ZEC also recovered strongly during the month, rising from around $300 to over $500 . These factors support the case for holding long positions.
ZEC exchange liquidation map. Source: CoinglassHowever, risks may arise from overly aggressive traders. After the December rally exceeding 70%, ZEC could correct from a technical perspective. A pullback to retest the old resistance level acting as support would be normal price behavior.
Profit-taking by buyers in early December may have fueled this correction. Such selling pressure poses a liquidation risk for long positions.
Additionally, a recent report by BeInCrypto indicates that ZEC whales are reducing their exposure levels. This behavior reflects increased caution following a strong recovery.
If ZEC falls to the $466 region in early January, liquidation of long positions could exceed $78 million.
3. Chain Link (LINK)
Many traders seem confident that LINK will soon recover from its current level of $12. They have committed significant Capital and leverage to long positions.
“LINK is holding its demand zone and starting to stabilize. As long as this support holds, the price has the potential to push to $13.5, $14, and $15. A break below $11.5 would invalidate this setup and signal bearish risk,” CryptoPulse commented .
Map of the LINK exchange liquidation. Source: CoinglassOne important signal worth paying attention to is that LINK reserves on Binance increased throughout December.
Binance Chainlink reserves. Source: CryptoQuantCryptoQuant data shows that Binance's 7-day Medium LINK reserves have ended a two-month downtrend. The trend has begun to reverse upwards.
This shift suggests that LINK holders may be preparing to sell whenever the price shows signs of recovery. The liquidation map indicates that if LINK falls to $11, accumulated buy liquidation could reach approximately $40 million.
