3 alternative currencies that may face significant liquidation risks during Christmas week
Several alternative currencies face high liquidation risks during Christmas week 2026. Liquidation maps show a clear imbalance, while open interest has sharply increased.
Which alternative currencies are at risk, and what factors should investors monitor when holding long or short positions? The following analysis explains the details.
1. Ethereum (ETH)
The 7-day liquidation map for Ethereum suggests that potential long position liquidations far exceed short position liquidations.
If the price of Ethereum (ETH) drops to the $2,660 area during Christmas week, total long position liquidations could exceed $4 billion. In contrast, total short position liquidations could reach $1.65 billion if Ethereum rises to $3,370.
Factors that long traders should monitor to reduce risks:
Arthur Hayes recently transferred 508.6 ETH (approximately $1.5 million) to Galaxy Digital. This move has fueled speculation that he may reduce his exposure to Ethereum.
The Premium Index for Ethereum on Coinbase turned negative in the third week of December. If selling pressure from Coinbase escalates, ETH prices may decline further in the coming days.
ETH ETF inflows reached $643.9 million last week. These trends reflect broader selling pressure in the market.
If these factors strengthen, they may lead to a sharp bearish scenario. This move could result in widespread liquidations among long traders.
2. Midnight (NIGHT)
Midnight (NIGHT) has recently attracted significant interest from traders. Open interest rose from $15 million to over $90 million within two weeks.
Liquidation data indicates that traders generally expect NIGHT prices to rise. As a result, traders betting on bullish scenarios may face greater losses due to increased capital and leverage usage.
Cardanians, a company that manages staking pools for Cardano, reported that NIGHT is now recording a daily trading volume of $6.8 billion. These figures exceed the combined volumes of SOL, XRP, and BNB. Despite the increase in volume, NIGHT recorded a red daily candle for the first time today after seven consecutive days of gains. This indicates rising selling pressure.
Additionally, investor Blotus mentioned, citing DexHunter data, that 100% of current NIGHT holders who bought in the market are making profits. These holders may take their profits at any time.
These signals indicate a warning that profit-taking pressure on NIGHT may escalate this week.
The liquidation heat maps indicate that if NIGHT drops to $0.077, total long position liquidations could reach $15 million.
3. Audiera (BEAT)
A recent report from BeInCrypto revealed that BEAT has risen by over 5,000% since its launch in November. The currency reached an all-time high of $4.99.
However, it seems that many traders are dissatisfied and continue to expect further increases. This sentiment appears in the liquidation data, where long position liquidations significantly exceed short position liquidations.
Some traders have expressed concerns about the potential for price manipulation. These concerns resemble the 75% collapse of Bitlight. Supporting observations include:
BEAT dropped by 30% within one hour, then rebounded by 50% in just one minute. Such sudden price fluctuations may be the result of manipulation by large wallets.
The official Audiera site is still unavailable. The project's official accounts on X show no updates beyond posts announcing BEAT as one of the big winners.
The market data platform CoinAnk has issued warnings about the risk of liquidation.
In a negative funding rate environment, although the cost of holding short positions remains low, severe fluctuations in BEAT can easily trigger cascading liquidations - affecting both long and short positions, as stated by CoinAnk.
If BEAT falls below $3, total long position liquidations could reach $10 million.
