What if 300 million dollars went up in smoke on the market? Despite notable rebounds, deadly traps lurk for three star altcoins this week.
XRP
The price of XRP briefly reached $1.66 this Sunday before falling back below $1.50. Analyst Dom spotted selling pressure on the Upbit exchange via the XRP Spot Cumulative Volume Delta indicator, with about 50 million XRP sold net in 15 hours. This wave coincides with the eve of the Lunar New Year, a holiday period in Asia that often reduces liquidity.
The XRP liquidation map shows that the cumulative volume of long positions slightly exceeds that of short positions. If XRP drops to $1.30, long liquidations could exceed $200 million; conversely, a breakout above $1.63 would expose $150 million in shorts.
Bullish discussions in the Dogecoin community are encouraging traders to open long positions this week. A drop to $0.091 could liquidate $90 million in longs, while a rise to $0.114 would target $53 million in shorts.
Nansen data also reveals a spike in DOGE balances on exchanges since February 12, during the rebound linked to rumors about the imminent launch of X Money. Many investors are taking advantage of this rebound to exit, transferring to exchanges. If this trend persists, the meme coin risks a correction towards long liquidation levels.
TAO
AI/crypto debates are capturing market attention, while TAO corrects towards long-term support. Analyst Michaël van de Poppe anticipates a strong rebound despite the risks of bubble bursting as artificial intelligence protocols become increasingly essential.
Similarly, Bittensor's listing on Upbit on February 16 could spark a bull run. The liquidation map shows $13 million in long positions liquidated if TAO exceeds $283, or $11.5 million in longs below $160.
The moral of the story: who embraces too much, holds the altcoins poorly.
