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3 Altcoins Facing Significant Liquidation Risk in the Second Week of February

After three consecutive weeks of sharp declines, buying pressure is resurfacing in the market. However, this momentum isn't enough to completely dispel investors' doubts. Some altcoins carry specific catalysts that could lead to strong recoveries this week, increasing their liquidation risks.

Ethereum ETHUSD , Dogecoin DOGEUSD and Zcash (ZEC) could collectively lead to over $3.1 billion in liquidations if the risks shared below are not managed correctly.

1. Ethereum ETHUSD

ETH's 7-day liquidation chart shows that potential liquidations from short positions outweigh those from long positions.

Many traders expect further declines. ETH has already lost approximately 40% of its value since mid-January.
This expected decline faces a growing risk. On-chain data shows that only about 16 million ETH remain on cryptocurrency exchanges, the lowest level since 2024.

The recent sell-offs have accelerated capital outflows from exchanges. As ETH balances on exchanges decrease, the supply in the market shrinks. This imbalance between supply and demand could accelerate price recoveries.
In addition, over 4 million ETH are staking, further restricting the liquid supply in the market.

If ETH's recovery strengthens due to these reasons, short position holders may face significant risk. If ETH rises to $2,370 this week, potential liquidations from short positions could reach $3 billion.

2. Dogecoin DOGEUSD

Dogecoin DOGEUSD price has fallen below $0.10. This level is the same as its lowest price in 2024. The 7-day liquidation map shows that if DOGE rises back to $0.109 this week, there could be potential liquidations of up to $98 million from short positions.
In the short term, the price chart shows a Bull Flag formation. This technical structure suggests that the DOGE price could reach $0.12 this week.

In the longer term, however, attention should be paid to rising troughs that follow rising peaks.

This structure is seen as a strength signal in Dogecoin.

As long as the rising troughs remain strong, we could see Dogecoin surpass the $0.73905 level and the current all-time high (ATH) with an increase of over 640%.

The debate surrounding Dogecoin could also be revived.
Zcash (ZEC): Ranked 3rd

Zcash (ZEC) has lost approximately 50% of its value since January 8th. This decline followed the announcement of a reduction in the amount of Zcash's core development team.

The negative investor sentiment across the market also deepened this loss.

ZEC's liquidation map shows that potential liquidations from short positions are leading the way. This suggests that many traders still expect the downtrend to continue.
Several positive signals have emerged in recent days. Ethereum founder Vitalik Buterin publicly donated to the development group working on Zcash.

Buterin emphasized that privacy is not an option, describing it as a fundamental blockchain infrastructure. This step could revive positive investor sentiment towards ZEC.

Despite the sharp price drop, over five million ZEC remain locked. Despite negative news flow and general selling pressure, investor confidence in Zcash technology does not appear to have been shaken.
Overall, the altcoin market has begun to recover after a period of panic selling. According to recent analyses, the total market capitalization could rise above $2.8 trillion again.

This widespread recovery, along with new asset-specific developments, could push prices much higher than short traders expect. This increases the likelihood of liquidation in the coming period.
‍$ETH $DOGE $ZEC