XRP Leads Altcoin Comeback After $1B Crypto Sell-Off

XRP is spearheading a notable rebound in the altcoin market following a turbulent weekend that saw over $1 billion in crypto liquidations due to geopolitical tensions between the U.S. and Iran. As panic-selling subsides and new buying activity emerges, XRP, along with Solana (SOL) and Dogecoin (DOGE), is regaining lost ground in what analysts are calling a resilient comeback.

The crypto sphere was rattled over the weekend as U.S. military strikes targeted Iran’s nuclear facilities. This sudden escalation led to a chain reaction of forced liquidations, mainly from overleveraged positions being closed involuntarily by exchanges. XRP, which saw $21 million wiped out during this wave, is now holding support above $2, reflecting renewed investor confidence.

Market Stabilizes After $1.2 Billion in Liquidations

Within the past 48 hours, the global crypto market endured over $1.2 billion in liquidations. On Sunday alone, $642 million in positions were wiped out, following Saturday’s $595 million purge. Bitcoin (BTC) suffered the most, losing $230 million, followed by Ethereum (ETH) with $188 million in long liquidations. Altcoins weren’t spared: Solana (SOL) saw $28 million disrupted, DOGE lost $25 million, and XRP came in at $21 million.

Liquidation events occur when traders can’t maintain the minimum margin requirements for leveraged positions, forcing exchanges to automatically close their positions. Such forced liquidations often result in sharp market dips, but also pave the way for faster recoveries as sentiment shifts and traders re-enter the market.

Saturday’s crypto meltdown was triggered by former U.S. President Donald Trump’s announcement of coordinated strikes on critical Iranian uranium facilities. Despite the initial panic, by Monday the bleeding slowed. Bitcoin made a recovery to about $101,237, ETH hovered near $2,236, while XRP stabilized above $2. DOGE touched 15 cents, and SOL reached $133—marking notable recoveries for each.

Though some losses remain on the daily charts, the sharp rebound has ignited optimism, especially among dip buyers. Several tokens are bouncing back faster due to supportive fundamentals, institutional traction, and evolving utility.

XRP and Altcoins Demonstrate Market Strength

Market experts are pointing out the unique recovery paths for altcoins, independent of Bitcoin’s volatility. Eugene Cheung, Chief Commercial Officer at OSL, mentioned via Telegram that Ethereum continues drawing institutional capital through ETF inflows. Meanwhile, projects like Solana and XRP are gaining from increased usage and network activity, boosted by developer engagement and ETF approval speculation.

“While Bitcoin’s volatility has drawn above-average attention post Iran strikes, the altcoin landscape shows promising divergence,” Cheung said. “Tokens with practical utility and engaged ecosystems are finding stronger footing.”

Adding to the sentiment, Nick Ruck of LVRG Research said investors generally believe the geopolitical consequences will remain limited to the region. While there’s a possibility of retaliatory measures from Iran, those actions are expected to be moderate, aimed at preserving regime credibility without inviting expanded conflict.

He stated, “We expect Iran to conduct measured responses for domestic legitimacy, but these are unlikely to escalate into large-scale regional warfare.”

However, uncertainty lingers. The U.S. has cautioned that any aggressive response from Iran could lead to deeper military repercussions. Potential disruptions in oil supply through the Strait of Hormuz also pose risk to broader financial markets, including crypto.

Despite ongoing risks, the prompt bounce-back in digital assets like XRP suggests that broader market confidence remains intact. The sheer speed of recovery indicates crypto may still be in a macro uptrend, and volatile corrections might serve as value entry points for investors looking to build positions in strong tokens.

Related: Expert Advice: Sell XRP If You’re Confused

With fundamental growth, adoption trends, and market maturity, XRP and its fellow altcoins are signaling resilience despite geopolitical pressure.