In a recent tweet, Santiment reported notable trends involving the dynamics of prominent projects such as Bitcoin (BTC), Dogecoin (DOGE), and Cardano (ADA).
BTC Traders Taking Profits
According to Santiment’s update, Bitcoin traders have been engaging in profit-taking activities. This observation comes as the growth in existing Bitcoin wallets containing more than above zero value BTC has experienced a slowdown.
Besides, the accompanying chart in Santiment’s update elaborated on the subtle flattening of the growth curve for Bitcoin addresses. The chart showed wallets holding 50.91 million BTC saw a marginal 0.25% increase over the past four days.
Significantly, this trend could indicate diminished demand for Bitcoin at the current price of around $37,200. Additionally, traders cashing in on Bitcoin profits may be doing so for various reasons, including anticipation of a price correction.
Dogecoin Wallets Surges
In contrast, the intelligence firm highlighted a surge in Dogecoin wallets. The chart depicted a substantial 2.52% increase in Dogecoin addresses over the same four-day period. The noteworthy growth has triggered a total of 5.39 million addresses.
Notably, this surge in wallet activity for Dogecoin suggests heightened interest and engagement within the DOGE community. At the time of reporting, DOGE trades at $0.07802, with a 2.2% gain in its cumulative seven-day performance.
ADA Wallets Decline
Meanwhile, another noteworthy observation is the decline in the number of ADA wallets. Specifically, the market tracker remarked: “Dogecoin wallets are surging, and Cardano wallets are dropping in number.”
The chart reveals a negative growth of 0.59% in ADA addresses over the past ten days, amounting to 4.46 million addresses. Santiment underscored that market analysts consider such drops in wallet numbers as a sign of capitulation, potentially foreshadowing upcoming price movements.
Meanwhile, a crypto enthusiast sought clarification on whether “capitulation” means Cardano’s price could increase. Santiment responded affirmatively.
It added that when non-zero addresses decrease, it usually suggests that smaller wallets have lost interest as the asset is underperforming. According to the intelligence firm, in such cases, larger holders, whales, tend to acquire more of the supply.
At press time, ADA sits right above DOGE in the ranking of most prominent project, exchanging hands at $0.3785, with barely a 1% gain over the past week.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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