3 Altcoins Face High Liquidation Risk in the Second Week of January

The altcoin market enters the second week of January with unclear indicators. Some tokens have reached new all-time highs. Others have recovered amid skepticism. Most altcoins proceed to battle to get better from the heavy sell-off that occurred in October final yr.

In that context, three altcoins face a high threat of giant liquidations as a result of merchants could also be misjudging actual market demand.

1. Solana (SOL)

The early 2026 meme-coin wave just isn’t extraordinarily sturdy, nevertheless it signifies that merchants have gotten extra open to threat. The Solana ecosystem has posted a number of new data. Pump.enjoyable’s DEX quantity has (*3*). The quantity of meme tokens deployed every day has also surged.

As a consequence, many merchants proceed to count on SOL to rise throughout the relaxation of January. This optimism seems in liquidation knowledge, the place potential cumulative liquidations on lengthy positions far exceed these on quick positions.

However, merchants could also be overestimating this demand. Santiment knowledge reveals that the quantity of new wallets created every week reached 30.2 million in November 2024. That determine has now fallen to 7.3 million.

The chart reveals that SOL’s rally has been carefully tied to weekly new-wallet development. The sharp decline in this metric weakens the elementary foundation of the early-year rebound.

“Solana has jumped as high as $144 because it seems to interrupt previous its $145 resistance. This will largely rely on whether or not SOL community development can start to rise once more,” Santiment reported.

A current BeInCrypto report additionally noted that SOL has recovered, with institutional capital flowing into the ecosystem. However, retail buyers stay largely absent. This group was a important driver of SOL’s explosive rallies in the previous.

If lengthy merchants preserve chasing positions with out tight stop-loss plans, they may face practically $1 billion in liquidations. This would occur if SOL falls again to the $132 space this week.

2. Monero (XMR)

Discussions about Monero (XMR) in the crypto group have turned more positive than ever. XMR has set a brand new all-time high at present. At the identical time, its rival Zcash (ZEC) has dropped sharply as confidence weakens.

The seven-day liquidation heatmap reveals that potential cumulative liquidations on lengthy positions dominate these on quick positions. XMR lengthy merchants ought to stay cautious this week for 2 primary causes.

First, XMR has reached a brand new high whereas additionally touching a robust resistance trendline that has remained in place since 2018. This creates heavy promoting strain from holders who’re sitting on giant income.

Second, Coinglass knowledge reveals that XMR open curiosity has surged by practically $180 million. This marks the highest stage in historical past.

Traders are due to this fact including capital and leverage proper as XMR hits a significant resistance zone. This conduct carries a really high threat. If XMR pulls again to $454 this week, lengthy merchants might face greater than $20 million in liquidations.

3. Render (RENDER)

Render (RENDER) has risen greater than 90% since the begin of the yr. Data from Artemis reveals that not solely RENDER, but additionally different AI cash, have posted sturdy features. This has made the AI sector the best-performing section of the crypto market thus far this yr.

Investors seem like favoring AI cash in early 2026. This sentiment might permit RENDER and different AI tokens to proceed rising after they attain short-term stability.

“These AI cash are doing very well, they usually barely present up on the timeline recently. FET and RENDER stand out. Buying spot and ready appears affordable, as a result of the transfer doesn’t look completed but,” Altcoin Sherpa commented.

The seven-day liquidation map for RENDER reveals a comparatively balanced expectation between lengthy and quick positions.

If AI cash preserve attracting capital this week, RENDER quick merchants might resist $5.8 million in liquidations. This would happen if RENDER climbs to $2.93.

The publish 3 Altcoins Face High Liquidation Risk in the Second Week of January appeared first on BeInCrypto.