A leading crypto analytics firm warns that on-chain data suggests traders are taking profits on their Cardano (ADA) positions.
Santiment says social media platform X ADA is issuing two bearish signals after rallying more than 220% this month.
According to the analytics firm, the massive upward move prompted traders to release $165 million in ADA gains on November 22.
“[November 22nd] was the highest day for traders to realize ADA gains in eight months, and social media discussions are currently at the highest levels for the coin in eleven months.
Santiment previously said rising discussions on social media suggest an asset could form a local price top.
At the time of writing, ADA is trading at $1.08, down more than 4% on the day.
Looking at the broader altcoin market, Santiment says altcoins will likely continue to see rallies as long as Bitcoin (BTC) trades above an immediate support level.
“While eyes are on Bitcoin making history, altcoins like XRP, Cardano, Stellar, Hedera, Mantra and Algorand are rapidly growing their respective market caps. As long as BTC maintains a support of ~$95,000+, expect gains to continue to redistribute to altcoins in November.”
At the time of writing, Bitcoin is trading at $98,197.
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