Crypto Market Sees Pullback as DOGE, ADA, and SOL Drop Over 5%

Major cryptocurrencies like Dogecoin (DOGE), Cardano (ADA), and Solana (SOL) dropped over 5% in the past 24 hours, signaling a cooldown following a strong week-long rally. Traders appear to be locking in profits as market momentum slows near key resistance levels.

The broader crypto market had surged alongside risk assets last week, driven by lower-than-expected U.S. inflation data, strong earnings from China’s tech sector, and optimism over a breakthrough U.S.–China trade agreement. Bitcoin (BTC) briefly touched $104,000, while Ethereum (ETH) peaked at $2,700 before both assets encountered resistance.

Analysts caution a potential pause or correction ahead. FxPro analyst Alex Kuptsikevich noted that Bitcoin has been consolidating near the $104,000 mark, a historically significant level. He also warned that Ethereum, after a 55% rally, may retrace to around $2,400 if it fails to hold above its 200-day moving average near $2,700.

Investor sentiment remains elevated. The Crypto Fear & Greed Index recently reached 73, a level typically associated with overheated conditions. Despite the dip in prices, institutional activity appears strong. Blockchain analytics firm Santiment reported that wallets holding 10 to 10,000 BTC have accumulated over 83,000 BTC in the past month, while smaller retail wallets have slightly reduced holdings.

Another bullish signal is Coinbase’s upcoming inclusion in the S&P 500 on May 19. Singapore-based QCP Capital believes the listing could act as a short-term catalyst, with passive fund inflows potentially exceeding $9 billion.

While the market is cooling off, fundamentals suggest the crypto rally may still have room to run, especially with institutional support and upcoming milestones.