After a robust week propelled by favorable macroeconomic cues, leading cryptocurrencies like Dogecoin (DOGE), Cardano (ADA), and Solana (SOL) have slipped over 5% as traders take profits and recalibrate positions ahead of key market events.
The broader crypto market had soared in tandem with risk assets last week, buoyed by easing geopolitical tensions and strong economic data. However, recent price action signals a potential cooling period.
“Bitcoin has been consolidating near the $104,000 level for six straight days, reflecting increased rotation and caution among traders,” noted Alex Kuptsikevich, analyst at FxPro. “This is typical when approaching critical resistance levels seen in late 2024 and early 2025.”
Ethereum also shows signs of struggle, trading around $2,615 after failing to hold above the $2,700 mark, which aligns closely with its 200-day moving average. “Given its impressive 55% rally over the last seven days, Ether could be poised for a pullback or sideways movement toward $2,400,” Kuptsikevich added.
The Crypto Fear & Greed Index, now at 73, underscores growing market exuberance — a warning sign for potential short-term corrections.
The recent rally was sparked by encouraging U.S. inflation figures, solid earnings reports from China’s tech sector, and a landmark U.S.-China trade agreement that lifted global equities. Bitcoin briefly surpassed $104,000, while Ethereum neared $2,700 before encountering resistance.
Haiyang Ru, Co-CEO of HashKey Exchange Business Group, emphasized the role of China’s tech earnings surge in fueling investor optimism. “This momentum, combined with lower U.S. inflation, has been crucial in sustaining the recent bullish trend,” Ru said.
Institutional accumulation remains robust, with Santiment data revealing that mid-tier Bitcoin holders have collectively added more than 83,000 BTC in the past month.
Looking forward, Coinbase’s imminent debut in the S&P 500 index on May 19 is expected to be a major driver for crypto markets. Passive investment inflows could exceed $9 billion, providing additional tailwinds.
“Historically, S&P 500 inclusions spark significant buying pressure as funds realign their portfolios,” said Singapore-based QCP Capital. “Coinbase’s inclusion will likely energize market participants and support further price gains.”
