Cardano (ADA) has seen a massive price surge—over 220% this month—but analysts are raising red flags. A crypto analytics firm, Santiment, is warning that the rally might be ending.
Profit-Taking and Social Media Buzz
Santiment noticed a huge spike in ADA profit-taking on November 22nd. Traders cashed out a whopping $165 million worth of ADA, the highest daily profit-taking in eight months. This coincided with a surge in social media chatter about Cardano, reaching an 11-month high. Santiment typically sees high social media activity as a potential indicator of a price peak.
The Bearish Outlook
Currently, ADA is trading below $1.08, down significantly for the day. Santiment interprets the combination of profit-taking and intense social media buzz as bearish signals, suggesting a potential price correction.
Altcoin Market Still Strong (For Now)
Despite the Cardano warning, Santiment remains positive about the broader altcoin market. They believe altcoins like XRP, Stellar, and others will continue to perform well as long as Bitcoin (BTC) stays above a key support level of around $95,000. At the time of writing, Bitcoin is trading above this level, at approximately $98,197.
Disclaimer: This information is for general knowledge only and is not financial advice. Always do your own research before investing in cryptocurrencies.
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