Cardano is approaching a bearish trend — analysts

Analytical company Santiment warns that blockchain data indicates that traders are actively recording profits from their positions in the Cardano token ADA $0.62 Cardano -1.29% Market capitalization $22.31 billion VOL. 24 hours $31.17 million . This can trigger a significant drop in the asset price.

According to Santiment, after ADA’s growth of more than 220% this month, traders began to sell assets en masse.

Thus, on November 22, they recorded profits of $ 165 million, which was the largest one-day profit realization in the last eight months. In addition, Cardano’s social media discussions reached a peak in 11 months.

A sharp increase in social activity often indicates the formation of a local price high, which may indicate the beginning of a correction.

At the time of writing, ADA’s price reached $ 1.05, its market capitalization is $ 36.70 billion, and daily sales reached $ 3.71 billion.

Santiment also notes that altcoins, including Cardano, XRP, Stellar, Hedera, Mantra, and Algorand, continue to increase their market capitalization while Bitcoin is holding above the $ 95,000 support.Experts emphasized that if BTC stays at $ 95,000, altcoins will continue to benefit from the redistribution of profits.