3 Altcoins That Could Trigger Major Liquidations in the Third Week of January

At the begin of the third week of January, complete market-wide liquidations reached almost $900 million. Negative volatility pushed by Trump’s tariff influence on the EU prompted the spike. The determine may rise additional as a number of altcoins present warning indicators.

XRP, Axie Infinity (AXS), and Dusk (DUSK) are attracting capital and leveraging this week for various causes. However, they might grow to be traps for buyers with out strict danger administration plans.

1. XRP

On January 19, XRP dropped to $1.85 earlier than rebounding to $1.95. The decline erased most of the restoration effort since the begin of the yr.

Short-term merchants seem more and more bearish. Many are betting on additional draw back. The 7-day liquidation map exhibits potential Short liquidations outweighing Long positions.

Liquidation information signifies that if XRP rebounds to $2.29 this week, Short positions may face greater than $600 million in liquidations.

This state of affairs may unfold if issues over Trump’s new tariffs fade shortly. Strong shopping for demand round the $1.8 stage would additionally help a rebound.

Another key metric is XRP’s spot common order dimension. CryptoQuant information exhibits that when XRP trades under $2.4, massive whale orders seem often. This sample displays robust whale demand at lower cost ranges.

“Whale curiosity is at a 2026 high. Large orders are dominating the tapes, suggesting the “Smart Money” is front-running the subsequent leg up.” – An analyst from CryptoQuant commented.

If whale accumulation surpasses the market’s short-term fears, XRP may get well swiftly. Such a transfer would compel brief merchants into liquidation.

2. Axie Infinity (AXS)

Axie Infinity (AXS) unexpectedly returned to the prime trending listing in the third week of January. The token has gained greater than 120% year-to-date.

The January rally is pushed by the Axie founders’ plan to transform rewards into a brand new utility token known as bAXS. This change is an element of a broader tokenomics overhaul scheduled for 2026.

The 7-day liquidation map for AXS exhibits an analogous potential liquidation quantity of round $12 million. However, the value vary wanted to liquidate Long positions is narrower than for Shorts. This suggests many merchants nonetheless count on additional upside in the brief time period.

On the different hand, information exhibits that AXS’s January rally coincides with a pointy enhance in alternate deposits. The 7-day common quantity of deposit transactions has reached a three-year high.

This development signifies that many buyers wish to exit as costs get well, probably resulting in promoting stress at any time. Such a growth may put lengthy positions in danger.

3. Dusk (DUSK)

Dusk has emerged as a brand new standout in the rising curiosity in privateness cash. The rally displays capital rotation from large-cap privateness cash to smaller-cap alternate options.

Despite an almost sixfold enhance since the begin of the yr, DUSK has already triggered significant Short liquidations over the previous 4 days. Short-term merchants proceed so as to add capital and leverage to bullish bets.

DUSK’s liquidation map exhibits that potential Long liquidations dominate. If the value corrects this week, Long positions would face critical danger.

A current BeInCrypto report highlights rising DUSK inflows to exchanges. This development displays potential profit-taking promoting stress. In addition, DUSK is rallying amid a return of market fear over Trump’s new tariffs on Europe. These components threaten the sustainability of the uptrend.

In October final yr, DASH surged sixfold after capital rotated from ZEC to lower-cap privateness cash. DASH then fell by 60% the following week. DUSK faces the danger of an analogous consequence.

If DUSK’s FOMO fades and the value drops under $0.13, complete Long liquidations may attain $12 million.

These three altcoins replicate very totally different, and even opposing, expectations amongst short-term merchants. This complexity stems from geopolitical pressures clashing with inside market dynamics. Without strict stop-loss methods, liquidation losses may hit each Long and Short positions.

The submit (*3*) appeared first on BeInCrypto.