Following a weekend crash that triggered the largest crypto liquidation event in history, the market witnessed an unexpectedly swift recovery led by major altcoins. By the following Monday, Ethereum had reclaimed the $4,000 level, Solana was attracting fresh capital, and XRP had regained key support, signaling that institutional interest remained strong despite the volatility.

Ethereum’s Resilience Driven by Fundamentals

Ethereum’s rapid bounce was a key indicator of market health. Nic Puckrin, founder of Coin Bureau, noted that the crash successfully purged excessive leverage from the system. However, he also highlighted a critical lesson for exchanges regarding auto-deleveraging (ADL), a risk management mechanism that forcibly closed even profitable positions and caught many traders by surprise. Puckrin described it as a “blunt instrument that certainly deserves some scrutiny.”

Arthur Azizov, an investor and founder at B2 Ventures, attributed Ethereum’s strength to its solid fundamentals and the large volume of staked tokens. This high staking ratio effectively limited selling pressure during the intense sell-off. Azizov suggested that if Ethereum could hold above $4,200, its next target might be $4,500 or higher.

Solana’s Recovery Highlights Institutional Interest

Solana’s rebound further strengthened its case as a top-tier blockchain. According to Viktor Fischer, CEO of RockawayX, the network’s scale, speed, and efficiency continue to attract significant economic activity and institutional capital. He pointed to several key metrics demonstrating its utility, including supporting $15.5 billion in stablecoins and handling 97% of daily trading volume for tokenized equities since June 2023. Additionally, Fischer noted that the network is home to $4.6 billion in tokenized real estate deals on the Parcl platform.

XRP Rallies on Strong ETF Inflows

XRP saw a sharp 35% rebound from its lows, climbing back to $2.60. Analysts at B2BinPay explained that this recovery was largely fueled by substantial inflows into exchange-traded funds (ETFs). This trend suggests growing investor confidence in XRP, particularly after Ripple’s legal settlement with the SEC in August. According to the analysts, crypto investment products saw nearly $6 billion in inflows earlier in the month, with over $200 million directed specifically to XRP-linked funds.

Despite a challenging macroeconomic outlook, the quick rebound across these assets indicates strong fundamental demand from investors. For XRP, the technical outlook shows resistance in the $2.80 to $3.00 range. A weekly close above this level could signal a potential rally toward the $3.40–$3.70 zone.