Cardano (ADA) has experienced a notable 7% drop in the last 24 hours, making it one of the worst-performing altcoins of the day.
This decline follows a trend where ADA has started dissociating from Bitcoin, indicating a shift in market conditions that could signal trouble for the altcoin in the near term.
Cardano Moves Away From Bitcoin
Cardano’s correlation with Bitcoin has dropped to 0.51, signaling that the altcoin is stepping away from Bitcoin’s movements. Traditionally, ADA has mirrored Bitcoin’s price action, but this decoupling is becoming more apparent as Bitcoin struggles, having fallen below $115,000 today.
This could present a bullish scenario for ADA, suggesting that it might not be as impacted by Bitcoin’s downturn. However, this decoupling hasn’t resulted in positive price action for Cardano, which is still under pressure despite the shift.
While the lack of correlation with Bitcoin could allow ADA to stand independently, the altcoin’s recent performance suggests otherwise. Despite Bitcoin’s difficulties, ADA’s price has continued to decline, reflecting broader market concerns.
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The technical indicators are signaling a bearish outlook for Cardano. The Moving Average Convergence Divergence (MACD) is showing signs of a potential bearish crossover. The signal line is approaching the MACD line, which suggests that the current bullish momentum will be short-lived.
This crossover is expected to occur within the next 10 days, further indicating that ADA could face continued downard pressure in the coming weeks. The lack of a strong buying force for ADA, coupled with the overall bearish trend in the crypto market, points to further declines unless a significant shift occurs.
ADA Price Fall Unlikely
Cardano’s price is currently at $0.85, reflecting a 7% decline in the last 24 hours. Despite this, ADA has maintained an uptrend since the beginning of the month. However, with the price facing strong resistance around the $0.90 level, ADA may struggle to maintain upward momentum, given the current market conditions.
Holding above the support of $0.83, Cardano could enter a phase of consolidation under $0.90 due to the mixed signals from both technical indicators and broader market sentiment. This range-bound trading could continue as investors weigh the uncertainty surrounding the altcoin’s near-term outlook.
If ADA holders start to sell off their positions, the price could easily slip below the $0.80 support level, potentially reaching $0.75. Such a move would invalidate the current bullish outlook for Cardano and suggest a deeper downturn in the price.
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