Crypto traders find themselves on the mend after a tumultuous weekend that saw staggering liquidations across the board. The chaos was set off by U.S. military strikes on Iran’s nuclear facilities, which sent shockwaves through the market, triggering over $1 billion in liquidations. Solana (SOL), XRP, and Dogecoin (DOGE)—some of the hardest-hit altcoins—are now bouncing back as leveraged positions reset and spot buying gains traction.
Liquidations Pause as Market Resets
In the past 24 hours, the crypto market absorbed a hefty $642 million in liquidations, adding to the previous $595 million purged on Saturday. This two-day liquidation spree totaled over $1.2 billion. Bitcoin (BTC) bore the brunt with $230 million in liquidated bets, followed by Ethereum (ETH) with $188 million. Among the altcoins, Solana saw $28 million in liquidations, XRP took on $21 million, and DOGE experienced over $25 million. As explored in Bitcoin Volatility Liquidates $700M, the US Strikes Iran as Conflict Escalates, these events underscore the market’s sensitivity to geopolitical tensions.
Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to insufficient margin to maintain the trade. Such cascades often signal market extremes, where sentiment swings could lead to a price reversal. This sell-off chain reaction ignited Saturday night after former U.S. President Donald Trump confirmed strikes on Iran’s nuclear sites.
However, by Monday, the storm seemed to calm. Bitcoin clawed back up to $101,237, Ether hovered around $2,236, and Solana edged up to $133. Meanwhile, XRP traded above $2, and DOGE hovered near 15 cents. Despite persistent losses on the daily chart, the rebound hints at eager dip buyers stepping in. Analysts note that institutional flows and burgeoning use cases are aiding certain tokens in their swift recovery. For more on Bitcoin’s price movements post-strike, see Bitcoin price risks sub-$100K dive after Trump confirms Iran strikes.
Altcoins Display Resilience
“While Bitcoin’s volatility has been the spotlight following the U.S.-Iran escalation, the altcoin market is demonstrating signs of divergent strength,” remarked Eugene Cheung, Chief Commercial Officer at OSL, via Telegram. “Ethereum continues to attract institutional interest amid growing ETF inflows, while Solana and other Layer 1 tokens benefit from improving network activity and developer adoption,” he added.
Some experts suggest the market’s quick rebound reflects a broader belief that the geopolitical fallout will be confined, with little macroeconomic spillover. “The market is quite optimistic that the Iran-Israeli conflict will remain muted and its economic impact will be locally contained,” commented Nick Ruck, director at LVRG Research. “We expect Iran to engage in some retaliatory measures to maintain its regime’s legitimacy, but such measures will likely be limited to avoid a protracted conflict,” Ruck noted.
Future Uncertainties in a Volatile Landscape
Yet, looming risks persist. The U.S. has hinted at “far greater” military responses should Iran retaliate, and any disruption to oil flows through the Strait of Hormuz could roil broader markets. But the rapid pace of recovery suggests that crypto remains in a macro uptrend, with liquidations potentially serving as opportune entry points for savvy investors.
As the dust settles, questions linger about the sustainability of this recovery. Can these altcoins maintain their upward trajectory amidst geopolitical tensions? The crypto market remains a volatile arena, where fortunes can turn on a dime, and the next move is anyone’s guess. But for now, traders are cautiously optimistic, keeping a watchful eye on both global events and market charts.
In this unpredictable landscape, one thing’s clear: crypto markets have a knack for resilience, bouncing back when least expected. This episode might just be another testament to the enduring allure of digital currencies in a world fraught with uncertainty.
Source
This article is based on: SOL, XRP, DOGE Lead Altcoin Recovery After $1B Weekend Liquidation
Further Reading
Deepen your understanding with these related articles:
- Dogecoin Leads Meme Coin Dive as Geopolitical Tensions Slam Crypto Market
- XRP Leads Crypto Majors Gains as Bitcoin Is Continuously Tested by Israel-Iran Tensions
- Altcoin Summer Speculation Grows as Solana Outperforms Bitcoin — What’s Next?
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
