Crypto Giants Dogecoin, Cardano, and Solana Pull Back as Traders Take Profits After Strong Rally

After a week of impressive gains driven by positive macroeconomic developments, leading cryptocurrencies are experiencing a pullback as investors take profits and prepare for upcoming market catalysts.

In the last 24 hours, Dogecoin (DOGE), Cardano (ADA), and Solana (SOL) each dropped by over 5%, signaling a pause after a strong rally fueled by optimism around easing global tensions and economic data.

“The Bitcoin price has been trading sideways near $104,000 for six consecutive days, reflecting a rotation phase rather than a clear trend,” said Alex Kuptsikevich, analyst at FxPro, in an email to CoinDesk. “This pattern is typical as the market approaches previous all-time highs set late last year, which often act as major resistance points.”

Kuptsikevich added that Ethereum’s price remains stuck around $2,615, unable to sustain a break above the $2,700 level, which also coincides with the 200-day moving average. “Following a 55% surge over the past week, Ethereum looks set for a pause or correction, potentially targeting support near $2,400.”

Market sentiment indicators corroborate the cautious mood. The Crypto Fear & Greed Index climbed to 73, indicating an overbought environment that often precedes short-term pullbacks.

Last week’s rally was boosted by a series of positive news events, including lower-than-expected U.S. inflation data, strong earnings from China’s tech sector, and progress in U.S.-China trade negotiations. These developments lifted equities and crypto markets alike, with Bitcoin briefly topping $104,000 and Ethereum reaching highs near $2,700.

“China’s technology earnings soared following the U.S.-China trade deal, reigniting investor hopes for sustained innovation and investment, especially in AI,” noted Haiyang Ru, Co-CEO of HashKey Exchange Business Group. “Coupled with softer U.S. inflation, these factors helped extend the bullish momentum.”

Institutional interest remains strong. Santiment data shows mid-sized Bitcoin holders (with 10 to 10,000 BTC) have amassed over 83,000 BTC in the past month.

Looking ahead, Coinbase’s anticipated inclusion in the S&P 500 index on May 19 is expected to act as a catalyst for further gains. Analysts estimate passive fund inflows could exceed $9 billion, providing fresh support for the sector.

“Index inclusion events typically trigger short-term buying as passive funds adjust to new benchmarks,” said Singapore-based QCP Capital in a Telegram statement. “Coinbase’s upcoming S&P 500 listing should bolster confidence and keep the momentum going.”