At the beginning of the third week of January, total liquidations across the market reached nearly $900 million. Negative volatility due to President Trump’s tariffs on the EU caused the sharp rise. This number could rise further as several altcoins are showing dangerous signs.
This week, XRP, Axie Infinity (AXS), and Dusk (DUSK) are raising money and leveraging money for a variety of reasons. But without a rigorous risk management plan, it can be a trap for investors.
Sponsored Sponsored
1.XRP
On January 19th, XRP fell to $1.85 before rebounding to $1.95. The decline wiped out most of the recovery efforts since the beginning of the year.
Short-term traders seem increasingly bearish. Many are betting on further declines. The 7-day liquidation map shows that potential short liquidations outnumber long positions.
According to liquidation data, short positions could face more than $600 million in liquidations if XRP recovers to $2.29 this week.
This scenario could play out if concerns about President Trump’s new tariffs quickly fade. Strong buying demand around $1.8 will also support the rebound.
Another important metric is XRP’s spot average order size. According to CryptoQuant data, large whale orders often occur when XRP trades below $2.4. This pattern reflects strong whale demand at lower price levels.
“Whale interest has reached a 2026 high. Large orders dominate the tape, suggesting that the ‘smart money’ is taking the lead in the next step.” – commented an analyst at CryptoQuant.
Sponsored Sponsored
If whale accumulation outweighs the market’s temporary concerns, XRP could recover quickly. Such a move could force short traders into liquidation.
2. Axie Infinity (AXS)
Axie Infinity (AXS) unexpectedly returned to the top trending list in the third week of January. The token has appreciated over 120% since the beginning of the year.
January’s rally was driven by Axie founders’ plan to convert rewards into a new utility token called bAXS. This change is part of a broader tokenomics review planned for 2026.
AXS’s 7-day liquidation map shows a similar potential liquidation value of approximately $12 million. However, the price range required to liquidate a long position is narrower than a short position. This suggests that many traders still expect further gains in the short term.
Sponsored Sponsored
Meanwhile, the January rally in AXS coincided with a sharp increase in foreign exchange deposits, according to the data. The seven-day average number of deposit transactions reached a three-year high.
This trend indicates that many investors are considering exiting the stock as prices recover, and selling pressure could come at any time. Such a development could put long positions at risk.
3. DUSK
Dusk has emerged as a new hot stock amid growing interest in privacy coins. This rise reflects the flow of funds from large-cap privacy coins to small-cap alternative coins.
Sponsored Sponsored
Despite increasing almost 6x since the beginning of the year, DUSK has already triggered massive short liquidations in the past four days. Short-term traders continue to add capital and leverage to bullish bets.
DUSK’s liquidation map shows that potential long liquidations are predominant. If prices correct this week, long positions will face serious risks.
A recent BeInCrypto report highlights the increase in DUSK inflows to the exchange. This trend reflects potential profit-taking selling pressure. Additionally, DUSK has been on the rise as market fears of President Trump’s new tariffs on Europe rise again. These factors threaten the sustainability of the uptrend.
Last October, DASH soared 6x after capital switched from ZEC to lower-cap privacy coins. DASH fell 60% the following week. DUSK faces the risk of a similar outcome.
If DUSK’s FOMO wears off and the price drops below $0.13, total long liquidations could reach $12 million.
These three altcoins reflect very different and even conflicting expectations among short-term traders. This complexity arises from the collision of geopolitical pressures and internal market dynamics. Without a strict stop-loss strategy, liquidation losses can occur on both long and short positions.
