The cryptocurrency market staged a strong weekend rebound, with Solana, Dogecoin, XRP, Cardano, and Ethereum posting notable gains as mass liquidations forced traders to cover bearish bets.
According to CoinGecko data, the top-performing altcoins among the ten largest cryptocurrencies by market capitalization climbed between 3% and 4% over the weekend, partially reversing last week’s sharp downturn. Solana (SOL), Dogecoin (DOGE), and XRP (XRP) were standout movers, while Bitcoin’s modest recovery provided the spark that drove broader market momentum.
Related reporting: October Dubbed ‘ETF Month’ as SEC Faces Final Deadlines on 16 Crypto Funds
Figures from CoinGlass show that nearly $260 million worth of short positions were liquidated in the last 24 hours, contributing to a total of $345 million across all positions. Short liquidations occur when traders betting against the market are forced to buy back into assets at higher prices, amplifying upward pressure.
Altcoins Bounce on Short Covering
Shivam Thakral, CEO of Indian crypto exchange BuyUcoin, told Decrypt that Bitcoin’s weekend uptick acted as the trigger for a wave of short covering, fueling altcoin prices.
“Short covering has amplified the move across the market, lifting altcoins in tandem with Bitcoin,” Thakral said.
However, he cautioned that the immediate market may consolidate as traders decide when—and where—to rotate capital into higher-risk altcoins. Looking into the fourth quarter, Thakral suggested that narrative-driven sectors—such as Layer 2 scaling projects, AI-linked tokens, and staking derivative platforms—are most likely to attract strong bids.
“While some altcoins could deliver outsized returns, projects without strong narratives, adoption, or development roadmaps are unlikely to see meaningful gains,” he added.
Sentiment Rebounds with Market
The weekend rally also helped improve overall market sentiment. The Crypto Fear & Greed Index, which dipped into “fear” territory last Friday, recovered to “neutral” on Monday, signaling a return of investor confidence.
Market capitalization across all cryptocurrencies currently stands at $2.23 trillion, reflecting a 2.35% gain in the past 24 hours, according to CoinGecko. Analysts maintain a cautiously optimistic outlook, noting that while volatility remains a key risk, the market’s resilience signals that bullish momentum may not yet be exhausted.