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A leading crypto analytics firm, Santiment, has issued a cautionary note regarding Cardano (ADA). On-chain data suggests that traders are capitalizing on the recent 220% rally by taking significant profits.**
Profit-Taking and Social Sentiment
According to Santiment, November 22nd marked a peak in realized ADA profits in eight months, with traders unloading a substantial $165 million worth of the cryptocurrency. Concurrently, social media discussions surrounding ADA have reached an 11-month high.
Historically, heightened social media interest often precedes a local price top. This pattern, combined with the recent profit-taking activity, raises concerns about a potential downward correction for Cardano.
🤑 Cardano has tripled its market cap over the past 17 days, amazingly bringing it to the cusp of surpassing a $1.00 market value for the first time since April, 2022. Today was the highest day of trader realized ADA profits in 8 months, and social media discussions are currently… pic.twitter.com/qP0Kgq764n
— Santiment (@santimentfeed) November 22, 2024
Broader Altcoin Market Outlook
Despite the potential ADA downturn, Santiment remains optimistic about the broader altcoin market. The firm believes that as long as Bitcoin (BTC) maintains its support level above $95,000, altcoins like XRP, Stellar, Hedera, Mantra, and Algorand will continue to experience growth.
The Impact of Bitcoin’s Dominance
Bitcoin’s dominance over the cryptocurrency market remains a significant factor influencing the performance of altcoins. If Bitcoin sustains its upward momentum, it could further fuel the altcoin rally, potentially offsetting the impact of Cardano’s profit-taking.
However, if Bitcoin were to experience a significant correction, it could trigger a broader market sell-off, impacting both Bitcoin and altcoins, including Cardano.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
