3 Altcoins Face High Liquidation Risk in the Final Week of January
Summary
Amid a return to "extreme fear" sentiment, several altcoins are poised for large-scale liquidations in the final week of January, potentially totaling nearly $5 billion across Ethereum (ETH), Chainlink (LINK), and River (RIVER).
For Ethereum, a rebound to $3,200 could trigger over $4.8 billion in short position liquidations, as whales are reportedly increasing long positions while retail investors are being liquidated. Chainlink faces over $40 million in short liquidations if it hits $13, despite indicators like decreasing exchange reserves suggesting long-term accumulation. River (RIVER), which saw rapid market cap growth, has dominant long positions; a drop below $60 could liquidate up to $35 million in longs, exacerbated by extreme supply concentration among the top five wallets.
These dynamics highlight that the altcoin market is becoming more selective, with only assets attracting sustained institutional interest likely to maintain capital inflows.
(Source:BeInCrypto)