A prominent crypto analytics firm is warning that on-chain data is indicating that traders are taking profits on their Cardano positions (ADA).
Santiment says on the social media platform X ADA is flashing two bearish signals after an over 220% rally this month.
According to the analytics firm, the massive upward move has incentivized traders to unload $165 million worth of ADA profits on November 22nd.
“[November 22nd] was the highest day of trader realized ADA profits in eight months, and social media discussions are currently at their highest level for the coin in 11 months.”
Santiment previously said that soaring social media discussions suggest that an asset may be forming a local price top.
At time of writing, ADA is trading for $1.08, down over 4% on the day.
Looking at the broader altcoin market, Santiment says that altcoins will likely continue to witness rallies as long as Bitcoin (BTC) trades above an immediate support level.
“While eyes have been on Bitcoin making history, altcoins like XRP, Cardano, Stellar, Hedera, Mantra, and Algorand are growing their respective market caps rapidly. As long as BTC maintains a ~$95,000+ support, expect November profits to continue redistributing to altcoins.”
At time of writing, Bitcoin is trading for $98,197.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: DALLE3
Read the full article here