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

Core Insights - The altcoin market is experiencing mixed signals, with some tokens reaching all-time highs while others struggle to recover from previous sell-offs [1] Group 1: Solana (SOL) - The Solana ecosystem has seen new records, including a peak in DEX volume and an increase in meme token deployments [2] - Traders are optimistic about SOL's potential rise in January, as indicated by liquidation data showing long positions significantly outnumbering short positions [3] - However, there are concerns that traders may be overestimating demand, as new wallet creations have dropped from 30.2 million in November 2024 to 7.3 million [4] - SOL has reached a price of $144, approaching a resistance level at $145, with future growth dependent on network activity [6] - If long traders do not implement tight stop-loss strategies, they could face nearly $1 billion in liquidations if SOL falls to around $132 [7] Group 2: Monero (XMR) - Discussions around Monero have become increasingly positive, with XMR achieving a new all-time high while its competitor Zcash has seen a decline [8] - The liquidation heatmap indicates that long positions dominate, but caution is advised due to XMR hitting a strong resistance trendline established since 2018, which may trigger selling pressure [9] - Additionally, XMR's open interest has surged by nearly $180 million, marking a historical high [10]