Solana, Dogecoin, and XRP Lead Crypto Rebound as Shorts Liquidate $260M

Crypto markets staged a weekend recovery, with Solana, Dogecoin, Cardano, Ethereum, and XRP posting gains of 3–4%, partially reversing last week’s sell-off.

Analysts say a wave of short-covering helped propel prices higher across major altcoins.

Data from CoinGlass indicates that nearly $260 million in short positions were liquidated, contributing to a total of $345 million in crypto liquidations over 24 hours.

Short covering occurs when traders who bet against the market are forced to buy back assets to limit losses, creating upward pressure on prices.

Shivam Thakral, CEO of BuyUcoin, told Decrypt that the rally in Bitcoin acted as a catalyst for altcoin gains. “As Bitcoin moves higher, short positions get squeezed, and this amplifies momentum across altcoins,” he said. Thakral expects prices to consolidate in the near term before capital rotates into select altcoin sectors later this week.

Looking ahead to the fourth quarter, Thakral anticipates interest in narrative-driven altcoins, including Layer 2 solutions, AI-related projects, and staking derivatives.

“Coins with strong roadmaps, adoption, and market narratives are likely to see outsized returns, while others may stagnate,” he added.

Market sentiment also reflects this rebound. The Fear and Greed Index has shifted from “fear” last Friday to neutral as of Monday, signaling growing optimism among traders.

Overall, the crypto market capitalization has climbed to roughly $2.23 trillion, up 2.35% in the past 24 hours.

The weekend surge follows a period of institutional caution. U.S. spot Bitcoin ETFs ended a four-week inflow streak last week, with notable outflows from Fidelity’s FBTC and BlackRock’s IBIT products.

Despite this, analysts remain cautiously bullish, citing ongoing short-covering dynamics and strong narrative plays in altcoins as factors supporting market resilience.