Dogecoin and Ether Lead Crypto Market Pullback as Bulls Take a Break

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The crypto market has been sliding over the past 24 hours as traders likely took profits after weeks of bullishness.

Ether and dogecoin led the fall among major tokens, dropping more than 5%, Cardano’s ADA and Polygon’s MATIC fell 4%, while bitcoin lost only 1.6%. %, according to data from CoinDesk.

Such moves resulted in the liquidation of over $173 million in longs, or bets at higher token prices. Ether futures saw $86 million in liquidations while Bitcoin futures traders lost $46 million, according to data source Coinglass.

Outside the majors, avalanche (AVAX) fell 7.7% while lido (LDO) fell more than 10%, ending a multi-week run that saw the token’s value jump by 135% in the last month. Meanwhile, a few tokens traded in the green, including those from interoperable blockchain platform Quant (QNT) and layer-1 network Aptos, both rising more than 4%.

The crypto market capitalization fell 3.5% to just over $1 trillion in what appears to be a breather after a notable rally. Bitcoin’s strength and strong transactional activity among tokens such as SOL and ADA helped push the crypto market back to the $1 trillion market cap mark earlier this month.

The pullback comes as U.S. stocks fell on Tuesday after technical issues on the New York Stock Exchange (NYSE) briefly disrupted market trading.

Thus, some traders have warned of an impending decline in the coming weeks.

“While the rally looks promising on paper, the reality is that there are still few traders in the markets,” Bitfinex analysts wrote in a Jan. 19 note sent to CoinDesk. “With the recent increase driven purely by sentiment, low funding rates and cascading short liquidations.”

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