Solana, Dogecoin, XRP Soar After $260M Crypto Short Positions Liquidated
Solana, Dogecoin, Ethereum, and XRP gain 3–4% after $260M in short positions are liquidated during the weekend crypto surge.
Key Takeaways
- Solana, Dogecoin, Ethereum, Cardano, and XRP led gains, rising 3–4% over the weekend.
- $260 million in short positions were liquidated, contributing to $345 million in total liquidations.
- Narrative-driven altcoins, Layer 2 solutions, AI projects, and staking derivatives are expected to attract investor attention in Q4.
- Fear and Greed Index moved from “fear” to neutral, signaling improved market sentiment.
- Total crypto market capitalization reached $2.23 trillion, up 2.35% in 24 hours.
Cryptocurrency markets bounced back over the weekend, recovering a portion of last week’s declines as investor confidence returned. Leading the charge were Solana, Dogecoin, Cardano, Ethereum, and XRP, each posting gains of 3% to 4%—the strongest moves among the top ten cryptocurrencies by market capitalization.
A significant driver of the rebound was the liquidation of nearly $260 million in short positions, contributing to a total of $345 million in crypto liquidations over the past 24 hours. Short-covering—when traders are forced to buy back positions as prices move against them—was particularly influential in lifting altcoins, which often track Bitcoin’s price movements.
Shivam Thakral, CEO of BuyUcoin, noted that Bitcoin’s recent price recovery triggered this short-covering activity, which in turn amplified gains across the altcoin market. “We expect the market to stabilize in the next few days before investors begin rotating capital into altcoins later this week,” he explained.
Looking toward the fourth quarter, Thakral highlighted specific sectors likely to attract investor interest. Narrative-driven altcoins, including Layer 2 scaling solutions, AI-related projects, and staking derivatives, are expected to see heightened activity. Conversely, coins lacking clear adoption, development plans, or market relevance may experience limited growth.
Market sentiment has also improved. The Fear and Greed Index—a widely used indicator of investor mood—rose from a “fear” reading last Friday to a neutral position by Monday, reflecting a broader sense of optimism following the weekend surge.
Overall, the total cryptocurrency market capitalization now sits around $2.23 trillion, marking a 2.35% increase over the past 24 hours. Analysts suggest that while the market shows renewed strength, investors remain cautious, keeping an eye on Bitcoin’s movements and the performance of high-potential altcoins.
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