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

Core Insights - "Extreme fear" sentiment has returned to the market, leading to a dominance of short positions, with altcoins like Ethereum (ETH), Chainlink (LINK), and River (RIVER) potentially triggering nearly $5 billion in liquidations this week [1] Group 1: Ethereum (ETH) - Ethereum's liquidation map indicates a severe imbalance, with potential cumulative liquidation losses for short sellers exceeding $4.8 billion if ETH rebounds to $3,200 [2] - Whale activity has shifted positively, regaining control over ETH, which could lead to a significant rebound and heavy losses for short positions [3][4] - Retail investors are facing liquidation while whales increase their long positions, suggesting a potential for a market rebound [4] Group 2: Chainlink (LINK) - Chainlink is experiencing a similar imbalance in its liquidation map, with potential cumulative liquidation losses for short positions exceeding $40 million if LINK rebounds to $13 [5] - Despite falling prices, LINK reserves have reached a new monthly low, indicating that investors are accumulating LINK and withdrawing it from exchanges, reflecting long-term confidence [6] - LINK is identified as an undervalued altcoin, and if accumulation pressure increases while prices decline, a rebound could pose liquidation risks for short sellers [7]