A leading crypto analytics firm is warning that on-chain data indicates traders are making profits on their Cardano (ADA) positions.
Santiment says on the social media platform that X ADA is issuing two bearish signals after rallying more than 220% this month.
According to the analytics firm, this massive surge prompted traders to unlock $165 million in ADA profits on November 22.
“(November 22) was the highest day for ADA profits made by traders in eight months, and social media chatter is currently at its highest level for the coin in 11 months.”
Santiment previously said the surge in social media chatter suggested an asset could form a local price premium.
At the time of writing, ADA is trading at $1.08, down over 4% on the day.
Looking at the broader altcoin market, Santiment says altcoins will likely continue to experience rallies as long as Bitcoin (BTC) trades above an immediate support level.
“While eyes are on Bitcoin to make history, altcoins like XRP, Cardano, Stellar, Hedera, Mantra, and Algorand are rapidly increasing their respective market caps. As long as BTC maintains support around $95,000 and above, expect November profits to continue to flow back to altcoins.
At the time of writing, Bitcoin is trading at $98,197.
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