Some crypto-assets regain momentum after a wave of liquidations on short positions. A technical dynamic that breathes new life into the market, in a phase of transition. All the details in the following paragraphs !
Last weekend marked a turning point for the crypto market. Several altcoins in fact posted a clear gain ranging from 3% to 4% in one day. Among them are :
According to crypto analysts, this rebound occurs after a series of forced short position liquidations totaling 260 million dollars. The total amounts to 345 million dollars over 24 hours according to CoinGlass.
Behind this rise is a well-known phenomenon among traders: short covering. When the crypto market turns upward, short sellers find themselves cornered. To limit losses, they urgently buy back their positions. The result: buying pressure intensifies and prices climb faster than expected.
This phenomenon mainly affected bitcoin, but the ripple effect also benefited altcoins. Within hours, several crypto assets regained more reassuring levels, erasing part of recent losses. Ethereum, Cardano, and XRP followed the trend. Strengthening the overall momentum.
According to some crypto experts, this bullish wave does not necessarily mark the start of a lasting trend. They anticipate a short-term consolidation phase before a potential capital rotation towards more targeted segments of the crypto market.
Among the favorites are :
Those with a strong narrative, a clear roadmap, and visible adoption could also stand out. In contrast, projects without vision or traction risk being left behind.
On the indicators side, the Fear & Greed Index has moved from fear to neutrality. Confirming renewed confidence after the crypto rally over the weekend.
In this highly volatile crypto market, some altcoins still show they can surprise. The rest will depend on investors’ ability to identify emerging trends and position themselves in time.
