The Cryptocurrencies XRP And Dogecoin Rise By 10% After The Storm

The crypto landscape, shaken by headwinds in recent weeks, is finally showing signs of resilience. As Bitcoin brushed against $75,000 before bouncing towards $80,000, altcoins like XRP and Dogecoin recorded gains of 10%, giving new life to the market. This upturn comes as the overall market capitalization returns to its levels from last November, a period marked by the election of Donald Trump. A technical rebound, massive liquidations, and a chain reaction from traders: decoding a relief that is as brutal as it is unexpected.

Crypto market mechanics: between liquidations and rebalancing

The return of buyers to Bitcoin has served as a catalyst. After a plunge below $75,000, the recovery towards $80,000 unleashed a positive shockwave. This increase, far from being trivial, occurs in a context where nearly $1.2 billion in derivative positions were liquidated in 24 hours on the crypto market. A forced cleaning that compelled sellers to cover their positions, fueling a bullish spiral.

In this wake, altcoins have surfed the wave. Cryptos Dogecoin, XRP, or even Cardano (ADA) have risen by up to 10%, partially erasing recent losses.

These assets, often more volatile, generally benefit from market turnarounds to attract capital seeking accelerated returns. A dynamic reinforced by the rebound of the CoinDesk 20 index (+9%), reflecting a renewed optimism.

However, this upturn hides a more complex reality. The market capitalization, returned to its level of November 2023, recalls a historical precedent: Trump’s victory then allowed crossing a resistant technical threshold. Today, this symbolic level becomes an anchor point, suggesting that investors are looking to stabilize prices after weeks of turbulence.

Sentiments and perspectives: between caution and opportunism

If prices are rising, minds, however, remain marked by distrust. The fear and greed index places crypto in a zone of “extreme fear” (23/100), well below the stock markets.

A paradox, according to Alex Kuptsikevich, analyst at FxPro: “This does not translate to increased confidence, but rather an organized sell-off, thus more dangerous.” For him, a technical rebound is not enough to reverse the trend without external catalysts.

Some players still see an opportunity. Jupiter Zheng, from HashKey Capital, emphasizes that Bitcoin could play its role as a safe haven if traditional markets struggle to recover. “Its relative stability despite record global sales could attract buyers looking for a dip,” he explains. An enticing hypothesis, but conditioned to a show of strength against traditional assets.

In the background, trade wars and political rumors add to the uncertainty. The fleeting surge of the S&P 500 (+7%), quickly canceled by a denial from the White House, illustrates this fragility.

Crypto traders, now accustomed to these upheavals, navigate between reactivity and caution, aware that every misstep can awaken volatility.

Although the recent calm offers a breath of respite, it still struggles to convince sustainably. Between technical adjustments and aspirations for a safe haven role, the market closely scrutinizes these five essential facts to try to decipher the upcoming trajectory.