After a week-long surge driven by macroeconomic optimism, major cryptocurrencies pull back as traders take profits and market focus shifts to key upcoming events.
Leading tokens such as Dogecoin (DOGE), Cardano (ADA), and Solana (SOL) fell by more than 5% over the past 24 hours as investors locked in gains following a strong rally last week.
The broader crypto market had climbed alongside risk assets, buoyed by positive macro factors and renewed investor confidence. However, signs suggest that some segments of the market may be overheating and could be poised for a short-term pause.
“Bitcoin has been stuck near the $104,000 mark for six consecutive days, showing increased rotational trading,” said FxPro analyst Alex Kuptsikevich in an email to CoinDesk. “This behavior is expected as we near the all-time highs seen last December and January, which historically acted as resistance levels.”
Kuptsikevich added, “Ether is currently trading around $2,615, unable to hold above the $2,700 resistance level near the 200-day moving average. After rallying 55% over the past week, ETH looks likely to pause or retrace, with a potential target around $2,400.”
Sentiment gauges reinforce this cautious outlook, with the Crypto Fear & Greed Index climbing to 73 — a level often associated with market exuberance.
Earlier this week, risk appetite surged on the back of positive U.S. inflation data, strong earnings reports from China’s tech sector, and progress in the U.S.–China trade negotiations. These factors lifted global equities and sent crypto prices higher, with Bitcoin briefly topping $104,000 and Ether hitting $2,700 before encountering resistance.
“China’s tech earnings soared following the US-China trade deal announcement, reigniting hopes for increased investment and innovation in areas like AI,” said Haiyang Ru, Co-CEO of HashKey Exchange Business Group, via Telegram. “Additionally, U.S. inflation came in lower than expected, providing further momentum for the bull market.”
Institutional interest remains strong despite the recent pullback. Data from Santiment showed that mid-sized Bitcoin holders—wallets holding between 10 and 10,000 BTC—have accumulated over 83,000 BTC in the past month.
Looking ahead, Coinbase’s upcoming addition to the S&P 500 index on May 19 is seen as a near-term catalyst. Some analysts project that passive funds tracking the index could inject more than $9 billion into Coinbase’s stock.
“Digital assets could see more upside, especially with Coinbase’s S&P 500 inclusion approaching,” Singapore-based QCP Capital noted in a Telegram message. “Historically, index additions act as short-term catalysts as passive investors rebalance their portfolios to match the benchmark.”
