A leading crypto analytics firm has issued a warning based on on-chain data, suggesting that traders are capitalizing on their Cardano (ADA) positions by taking profits. Santiment has observed two bearish signals on the social media platform X ADA following an impressive 220% surge in value this month.
The analytics firm disclosed that the considerable upward movement in ADA’s price has prompted traders to cash in $165 million in profits on November 22nd. This day marked the highest realization of ADA profits by traders in eight months, coupled with a surge in social media discussions surrounding the coin, reaching an 11-month high.
Santiment has previously noted that a surge in social media discussions often indicates that an asset might be nearing a local price peak. As of the latest update, ADA is trading at $1.08, reflecting a decline of over 4% for the day.
In the broader altcoin market landscape, Santiment anticipates continued rallies as long as Bitcoin (BTC) maintains a key support level. Altcoins such as XRP, Cardano, Stellar, Hedera, Mantra, and Algorand are witnessing rapid growth in their market capitalization. The firm suggests that if BTC sustains support above approximately $95,000, profits from November are likely to flow into altcoins.
As of the current moment, Bitcoin is trading at $98,197, maintaining its position as the leading cryptocurrency in terms of market value.
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The article also includes an image generated by DALLE3 technology, showcasing the innovative tools used in the crypto analytics space to analyze market trends and inform trading decisions.