$XRP, Altcoins, AI Tokens Outperform Bitcoin In Crypto Market Recovery Gains

Major altcoins, led by XRP, were outperforming Bitcoin early Tuesday as the cryptocurrency market gradually began recovering from the devastating weekend dump that resulted in over $2.2 billion being liquidated.

The bloodbath in the crypto industry was an extension of the broader financial market's reaction to U.S. President Donald Trump's tariff announcements on Canadian and Mexican goods.

With some relief over a 30-day tariff truce as agreed upon by Trump and Canadian Prime Minister Justin Trudeau, there is increasing hope that crypto will also recover in the long run.

Altcoins outperform crypto king

XRP, the native token of the XRP Ledger, led the early Tuesday gains, climbing 11.3% overnight, despite its 17% seven-day plunge. Meanwhile, Bitcoin increased 5.8% in the day.

Cardano (ADA) was also on the rise, gaining nearly 10% in the day on the back of a 21.5% downtrend in the last seven days.

Ethereum (ETH), the world's second-largest crypto asset, rallied 7.8% in the past day after it dropped as low as $2,400 during the weekend bloodbath.

Solana (SOL) was on a gradual climb, gaining 5.4% in the day, while BNB increased 3.3% as per CoinGecko data.

Dogecoin (DOGE), the largest meme coin by market cap, increased 8% in the last 24 hours.

Save for major stablecoins, the entire crypto market was on a significant downtrend over the weekend and even on Monday, the market struggled to reach the green line. However, hopes are high for a reversal in the coming days.

Crypto bulls urge holders to HODL On

Amid increasing pessimism among newer crypto owners, bulls and long-time holders are uniting to hopefully inspire retailers to keep their eyes on the prize.

"Crypto will destroy you mentally before rewarding you financially. Hold on, we are so close," said Marcell, a well-known trader in the space.

For crypto YouTuber MMCrypto, the market's recent movements are just in preparation for a "textbook bump & run reversal."

Crypto investor Kame had a similar take, noting that a bullish candle was recently seen on Ethereum's chart, one that could "indicate a bullish reversal is coming."

AI tokens display impressive resilience

Meanwhile, some AI tokens were showing serious resilience on CoinGecko's daily Top Gainers list, despite the broader crypto market's apparent struggles to hold the green line.

SNAI, the native token of the SwarmNode.ai platform that allowed users to run AI agents in the cloud without managing servers, was up nearly 40% in the day.

MOR, the native crypto asset of peer-to-peer general purpose AI network Morpheus, surged nearly 54% in the last 24 hours.

NEURAL of the NEURALAI generative AI to 3D model platform was rallying over 50% in the day.

It remains to be seen whether the rally among some rising AI tokens will have a positive effect on other crypto coins. For now, the crypto market is also dealing with news about China's retaliatory tariffs against the U.S.