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Short-term derivatives traders held long positions in many altcoins at the end of December. However, without strict stop-loss plans, these positions may face liquidation risks from January.
Which altcoins are at risk, and why could they cause significant liquidation losses? The following analysis explains the details.
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1. Solana (Civil)
Solana’s 7-day settlement chart shows a severe imbalance. Cumulative long qualifiers far outnumber short qualifiers.
Long traders have reasonable reasons to hold SOL positions at this point.
Pointing BeInCrypto reports that January has historically been a strong month for SOL price performance. Moreover, the bullish RSI divergence confirmed the expectation of a possible recovery.
Long traders may make unrealized profits in the coming days. However, without profit plans, these long positions can be vulnerable.
SoSoValue data shows that ETF SOL It recorded its weakest weekly flow since launch. Last week, net inflows reached only $13.14 million. That number is down more than 93% from nearly $200 million during the launch week.
Although no week has yet recorded negative net inflows, this sharp decline strongly suggests weak demand for SOL ETFs. This trend may put pressure on the SOL price in early January.
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Therefore, long positions require caution. If the lifetime falls to $110, the cumulative long-term settlements could exceed $880 million.
2. ZECASH (ZEC)
Similar to SOL, ZEC’s liquidation chart shows that traders allocate capital and leverage significantly to long positions.
Increased Number of ponds protected at once Another one at the end of December. The price of ZEC also increased a lot during the month, rising from about $300 to Above $500. These factors support the argument for holding long positions.
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However, risks can arise from traders who behave too aggressively. After a December rally of more than 70%, ZC could technically correct. A pullback to retest previous resistance as support would be normal price behavior.
Taking profits in early December could push this correction. This marketing pressure poses a risk of liquidation of long positions.
In addition, Pointing A recent report from BeInCrypto suggests that ZEC whales are reducing their exposure. This behavior reflects increased caution after acute recovery.
If the position index falls to the area of ​​$466 in early January, the long qualifier could be more than $78 million.
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3. Chain mail (link)
Many traders seem confident that LINK will soon recover from the current level of $12. They have committed significant capital and leverage in long positions.
“Link maintains its demand zone and begins to stabilize. As long as this support holds, the price has room to push towards $13.5, $14, and $15. A drop below $11.5 will invalidate this setup and indicate downside risks.” The CryptoPulse website.
There is one crucial sign worth noting. LINK reserves on Binance increased in December.
CryptoQuant data shows that Binance’s 7-day average LINK reserves have ended a 2-month trend. The trend is beginning to reverse to the side.
This change indicates that the owners of LINK They may prepare to sell whenever prices show signs of recovery. The liquidation chart indicates that if the price of LINK falls to $11, the cumulative long-term liquidations could reach about $40 million.
