Emily Walker
The cryptocurrency market is thriving this November, often referred to as “Moonvember,” with Bitcoin leading the charge. Notably, Cardano has shown remarkable price growth recently, marking one of the best performances in the sector over the past week.
Cardano, now the ninth-largest cryptocurrency, has successfully regained the $1 threshold, a significant level it has been below for over two years. Investors are curious about how soon Cardano might reach its all-time high again, considering its recent upward momentum.
Profit-Taking by ADA Investors — Effects on Pricing
On November 22, blockchain analysis firm Santiment reported insights related to Cardano’s price activity from the prior week. The data indicates that the ADA token’s market cap has more than tripled within 17 days, now approaching $36 billion.
On the evening of November 22, Cardano broke past the $1 mark for the first time since April 2022, showcasing a strong bullish trend over the preceding weeks and outperforming most other major cryptocurrencies.
This rapid increase in price came with significant profit-taking actions, with Santiment noting one of the highest realizations of profit by traders in over eight months. Approximately $165 million worth of ADA was sold for profit on that day.
This level of selling could potentially negatively influence Cardano’s short-term price. It is typical to see some distribution when prices are rising. However, if profit-taking continues at this rate, it may hinder the momentum of Cardano’s rally.
Additionally, discussions about Cardano on social media spiked notably on Friday, reaching levels not seen since December 2023. While this reflects positive sentiment, the increase in chatter could also indicate that investors are feeling a fear of missing out (FOMO).
Historically, markets often react contrary to the prevailing crowd sentiment. Therefore, with ADA investors showing heightened enthusiasm and FOMO, Cardano might experience a minor price correction.
Current Cardano Price Overview
At the time of this writing, Cardano’s price is approximately $1.1, representing a remarkable increase of over 35% within the last 24 hours.