Santiment has warned of profit taking on Cardano (ADA). After gaining 220% in November, ADA has been on a downtrend recently.
The crypto analytics firm reported that ADA's profit realizations accelerated at $1 levels. ADA, which experienced a major rise in November, began to lose value as investors began to sell in significant amounts. According to Santiment data, one of the largest profit purchases in ADA occurred on November 22. On this date, traders converted approximately $165 million worth of ADA into cash. Santiment announced this date as the highest profit realization day in eight months. It was also observed that discussions about ADA on social media increased significantly on the same day. The firm used the expressions, "Social media discussions about ADA reached the highest level in the last 11 months." Stating that this intensity on social media usually indicates that the price of an asset is approaching its peak, Santiment warned investors to be careful. It is known that high social media discussions can trigger price fluctuations.
Santiment noted that the future performance of ADA and similar altcoins depends on Bitcoin maintaining its support level at $98,292. Bitcoin is currently trading around $98,197. If BTC does not lose the $95,000 support level, bullish movements are expected to continue in the altcoin market.
The firm predicts that altcoins such as XRP, Stellar (XLM) $0.517920, Hedera, Mantra, and Algorand could see significant increases in their market value if Bitcoin holds its support level. “As long as Bitcoin holds the $95,000 support level, we expect interest in the altcoin market to continue,” Santiment said.
Finally, it is noted that ADA is currently trading at $1.08. With a daily decline of 4%, ADA’s future price movements will depend on both market dynamics and investor attitudes.