The cryptocurrency market has continued to sparkle in the historically bullish month of “Moonvember,” with the market leader Bitcoin setting the pace in the space. However, the Cardano price performance in the past week is undoubtedly one of the best the market has seen in recent weeks.
The ninth-largest cryptocurrency has finally reclaimed the $1 mark after more than two years of trading beneath the psychological level. Investors are beginning to wonder when Cardano will return to its all-time high price, especially considering the momentum with which it has moved lately.
ADA Investors Are Taking Profit — Impact On Price
In a November 22 post on the X platform, blockchain intelligence firm Santiment shared on-chain insights into the Cardano price performance in the past week. According to price data, the ADA token has more than tripled in its market capitalization in the last 17 days, now standing on the cusp of $36 billion.
In the late hours of Friday, November 22, the Cardano price surpassed the $1 mark for the first time since April 2022. This price feat underscores the intense bullish momentum of the altcoin in the past few weeks, outperforming almost all assets in the top ten largest cryptocurrencies.
Unsurprisingly, this rapid price increase was accompanied by a huge degree of profit-taking, as Santiment observed the highest level of traders’ realized profit in over eight months on Friday. Data from the on-chain firm shows that around $165 million worth of ADA was sold for profit.
Source: Santiment
This level of selling could be bearish for the price of Cardano in the short term. While it is natural to see some distribution from investors as token price rises, a sustained trend of profit-taking amongst ADA investors could hamper the Cardano price momentum and stall the rally.
Furthermore, the social media discussions around Cardano witnessed a significant spike on Friday, reaching its highest level since December 2023. While this signals positive sentiment around the altcoin, rising social media discussions could also signal that investors feel FOMO (fear of missing out).
Historically, crypto markets tend to move in the opposite direction of the crowd. Hence, with the ADA crowd feeling hyped and showing FOMO, the Cardano price could suffer a slight correction.
Cardano Price At A Glance
As of this writing, the price of Cardano stands at around $1.1, reflecting an over 35% increase in the past 24 hours.
The price of Cardano breaks above $1.1 on the daily timeframe | Source: ADAUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Source: https://bitcoinist.com/cardano-price-rumble-on-breaks-1-for-the-first-time/