Leverage Builds on XRP, DOGE, TAO as Liquidation Risks Intensify

The crypto market has started the third week of February with a modest rebound, but derivatives data suggests liquidation risks remain elevated. Leveraged traders in XRP, Dogecoin, and Bittensor (TAO) face key price levels that could trigger sharp volatility if breached.

XRP Liquidation Levels and Exchange Selling Pressure

Data from liquidation chart shows long positions in XRP slightly outweigh shorts. If XRP drops toward $1.30, cumulative long liquidations could exceed $200 million. On the upside, a move above $1.63 may liquidate roughly $150 million in short positions.

Recent order flow adds caution. Nearly 50 million XRP were reportedly net sold within 15 hours on South Korean exchange Upbit, creating notable spot selling pressure. With XRP heavily traded across major Korean platforms, any continued distribution could increase downside risk for leveraged longs.

Dogecoin Exchange Inflows Raise Downside Risk

For Dogecoin, long liquidations could approach $90 million if price slides toward $0.091. Conversely, a rally to $0.114 may force around $53 million in short liquidations.

On-chain data shows exchange balances rising since mid-February, suggesting some investors are moving tokens to trading venues during the recovery. Sustained inflows often precede profit-taking, which may pressure price and expose overleveraged longs.

Bittensor (TAO) Short Squeeze Potential After Upbit Listing

The recent Upbit listing has renewed attention on Bittensor. If TAO pushes above $283, short liquidations could exceed $13 million. A decline toward $160 would threaten roughly $11.5 million in long positions.

Michael van de Poppe stated that;

With AI-focused tokens attracting steady interest, new liquidity from major exchanges may amplify volatility. Traders should closely monitor leverage ratios and spot flows as liquidation clusters tighten across key altcoins.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.