Cardano (ADA) has fallen by 7% in the last 24 hours, becoming one of today's worst altcoins.
This decline follows a trend of ADA beginning to reduce its correlation with Bitcoin, indicating a change in market conditions that could be problematic for altcoins in the short term.
Cardano Distancing from Bitcoin
Cardano's correlation with Bitcoin has dropped to 0.51, indicating that the altcoin is moving away from Bitcoin's movements. Traditionally, ADA has followed Bitcoin's price movements, but this separation has become more pronounced as Bitcoin falls below $115,000 today.
This could present a potentially positive scenario for ADA, suggesting it may be less affected by Bitcoin's decline. However, this separation has not led to a positive price movement for Cardano, and it continues to face pressure despite the changes.
Despite the lack of correlation with Bitcoin, the recent performance of altcoins suggests otherwise. ADA's price continues to fall even amid Bitcoin's difficulties, reflecting broader market concerns.
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Technical indicators are showing 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, suggesting that the current bullish momentum may be short-lived.
This crossover is expected to occur within the next 10 days, indicating that ADA may continue to face downward pressure in the coming weeks. With a lack of strong buying pressure for ADA and combined with the overall weakness in the cryptocurrency market, it points to potential further decline unless significant changes occur.
Low Likelihood of ADA Price Decline
Cardano's price is currently at $0.85, reflecting a 7% drop in the last 24 hours. Nevertheless, ADA has maintained an upward trend since the beginning of this month. However, facing strong resistance around the $0.90 level, it may be difficult to maintain its upward momentum given the current market conditions.
Remaining above the $0.83 support line, Cardano may enter an adjustment below $0.90, which could be due to mixed signals from technical indicators and broader market sentiment. Trading within this range may continue as investors assess the short-term outlook for the altcoin.
If ADA holders begin to sell their positions, the price could easily fall below the $0.80 support line, potentially reaching $0.75. Such a movement could invalidate the current bullish outlook for Cardano and suggest a deeper price decline.
