3 Altcoins That Could Trigger Major Liquidations in Early January

Short-term derivatives traders are heavily positioned in long trades for several altcoins, creating potential liquidation risks in early January if prices reverse without stop-loss orders. The three coins highlighted are Solana (SOL), Zcash (ZEC), and Chainlink (LINK).

Solana (SOL) shows a severe imbalance where long liquidations heavily outweigh short ones, despite historical January strength and bullish divergence. However, a sharp drop in SOL ETF net inflows signals weakening demand, and a fall to $110 could trigger over $880 million in long liquidations.

Zcash (ZEC) also has leveraged long positions following a strong December rally (from $300 to over $500). A technical correction after this surge, potentially driven by early buyers taking profits or whales reducing exposure, could lead to over $78 million in liquidations if ZEC drops to $466.

Chainlink (LINK) traders are confident, holding support near $12, but an increase in LINK reserves on Binance suggests holders might be preparing to sell on recovery. If LINK falls to $11, cumulative long liquidations could reach about $40 million.

(Source：BeInCrypto)