After a brutal weekend that wiped out over $1.2 billion in leveraged crypto positions, markets are now bouncing back. The bounce is being led by Solana (SOL), XRP, and Dogecoin (DOGE); all showing signs of life after the panic selling that followed US airstrikes on Iranian nuclear sites. Experts believe this renewed altcoin recovery is indicative of the fact that despite geopolitical overhangs, investor appetite for digital assets remains.
- From Collapse to Comeback: What Triggered the Liquidations?
- Analysts See Resilience, Not Retreat.
- Beyond the Headlines: Risks Remain
- The Bigger Picture: Is the Market Still Bullish?
- Conclusion
- FAQ
- What caused the $1.2 billion in liquidations?
- Which altcoins bounced back the most?
- Is the altcoin recovery sustainable?
- What are the risks?
- Glossary
From Collapse to Comeback: What Triggered the Liquidations?
Based on available reports, the sell-off started late Saturday after President Donald Trump confirmed strikes on Iran’s uranium enrichment facilities. Markets quickly priced in the threat of conflict and margin calls forced liquidations across major exchanges. According to CoinGlass, over $595 million was liquidated on Saturday and another $642 million on Sunday. That’s a total of over $1.2 billion, the most in months.
Bitcoin led the liquidation chart with $230 million in forced closures. Ethereum was second with $188 million, Solana $28 million, XRP $21 million, and Dogecoin $25 million. That pushed Bitcoin below $100,000 for a bit before recovering to above $101,000 as at the time of this writing.
As at this Monday morning, things are looking stable again. Solana is back above $134, XRP is back at $2, and DOGE is near $0.155. Despite the initial drop, altcoins are recovering fast; a trend that analysts say is just the overleveraged positions getting flushed out, not a bearish shift.
This bounce has put the spotlight back on altcoin recovery as sentiment improves and traders are getting back in at better levels.
Analysts See Resilience, Not Retreat.
“The market is pretty confident the Iran-Israel conflict will be contained and the economic impact will be local,” said Nick Ruck, director at LVRG Research.
He noted Iran may respond but it will be measured especially with US warnings of “far greater” consequences.
Eugene Cheung, Chief Commercial Officer at OSL, said altcoins are finding support due to their strong underlying activity.
“Ethereum is still attracting institutional flows due to ETF optimism, while Solana and other Layer 1s are benefiting from real developer traction and growing ecosystem utility,” Cheung said in a Telegram message.
Beyond the Headlines: Risks Remain
Despite the bounce; broader risks haven’t gone away. Any disruption to oil shipments through the Strait of Hormuz, a major global chokepoint, could trigger a wider market shock. A more aggressive Iranian response could also derail current optimism and re-ignite volatility across crypto and equities.
Still, most analysts agree this is more about over-leveraged traders getting flushed out than a structural threat to the market as a whole. The view is supported by the speed of the bounce and the concentration of losses in longs.
The Bigger Picture: Is the Market Still Bullish?
Even with the liquidation event, many investors and analysts believe crypto is still in a macro uptrend. Bitcoin’s price action shows strong institutional interest, with ETFs still seeing inflows despite the volatility. Altcoins are more vulnerable to leverage but are also showing surprising resilience, especially those with use cases or developer momentum.
As Eugene Cheung said,
“The divergence between BTC and altcoin behavior shows the market is no longer just trading narratives. There’s more weight being given to fundamentals.”
Conclusion
The liquidation that led to this latest altcoin recovery was a painful reset but the market bounced back quickly; led by altcoins like SOL, XRP and DOGE. As a result, the underlying bullish structure is still in play. With geopolitical risks being watched closely, investors are ready to take risk again but more cautiously.
This altcoin recovery could be the setup for more momentum if macro factors stays in check.
FAQ
What caused the $1.2 billion in liquidations?
A series of US airstrikes on Iranian nuclear sites caused panic selling across crypto and liquidated leveraged positions.
Which altcoins bounced back the most?
Solana (SOL), XRP and Dogecoin (DOGE) bounced back the fastest; reclaiming key levels after the initial crash.
Is the altcoin recovery sustainable?
Analysts say while caution remains, the quick bounce suggests confidence in the long term direction of the market—especially for projects with strong fundamentals.
What are the risks?
Geopolitical tensions, oil shocks, and liquidation waves if Iran responds aggressively or macro gets worse.
Glossary
Altcoin Recovery – A market phase where altcoins bounce back.
Liquidation – A leveraged position getting closed out due to lack of collateral.
Hormuz – Waterway for global oil transport; any disruption here can cause market chaos.
Layer 1 – Foundational blockchain (e.g. Solana, Ethereum) where dApps are built.
Sources
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