The crypto market just experienced a spectacular rebound, with over $457 million in short positions liquidated in 24 hours. Solana, Cardano, and Ripple are up 12% following Bitcoin breaking the symbolic $93,000 mark. Are major altcoins confirming a new bullish cycle, or is this simply a technical short squeeze?
The magnitude of liquidations in the derivatives market deserves an in-depth analysis. A washout of this scale typically indicates that traders positioned the market excessively in one direction, creating the conditions for a violent technical reversal.
On-chain data reveals that most liquidated positions were concentrated at leverage levels between 10x and 50x. These over-leveraged traders were swept away when Bitcoin breached key resistance levels, triggering a cascade of stop-losses and automatic liquidations. The funding rate on perpetual swaps, which was deeply negative before the rebound, normalized rapidly, signaling a healthy rebalancing of market sentiment.
This purge of bearish positions has created a healthier environment for a potential bullish continuation. However, experienced traders know that these violent moves can also constitute bull traps if volumes fail to confirm the momentum. Order book analysis shows significant sell walls between $95,000 and $98,000 for Bitcoin, zones that will constitute decisive tests for what comes next.
Beyond the technical move driven by liquidations, these three altcoins present fundamental catalysts fueling interest from institutional and retail investors alike.
Solana continues to dominate the decentralized applications sector with sustained on-chain activity. Daily transaction counts remain elevated despite the recent correction, demonstrating real adoption beyond speculation. Developers increasingly favor the Solana ecosystem for its high throughput and minimal fees, factors that support medium-term valuation.
Cardano is benefiting from anticipation of new DeFi feature launches and the expansion of its smart contract ecosystem. XRP is taking advantage of the favorable evolution of the U.S. regulatory environment concerning Ripple, with enhanced prospects for institutional adoption in cross-border payments.
The synchronized performance of these three assets suggests renewed global interest in large-cap altcoins. Investors appear to be favoring established projects with deep liquidity over speculative low-cap tokens, a potential sign of cycle maturation.
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