Despite the broader crypto market’s bullish sentiment, Cardano (ADA) is showing signs of weakness. While Bitcoin recently reached a new all-time high (ATH), ADA has failed to follow suit—a troubling sign for investors. However, a strong faction within the ADA community remains confident that the altcoin will bounce back, pointing to key technical indicators that suggest bullish resilience.
Cardano Decouples From Bitcoin – A Warning Sign?
One of the most concerning developments is the declining correlation between Cardano and Bitcoin. Currently at -0.27, ADA’s price movements are no longer in sync with Bitcoin, which is unusual during bull markets. Historically, such negative correlations have often preceded corrections in ADA’s price, raising fears that a significant downturn could be on the horizon.
While Bitcoin sets the tone for the broader market, ADA’s divergence might indicate underlying weakness in investor confidence or ecosystem traction. This disconnect has caught the attention of market analysts who warn that, unless ADA realigns with Bitcoin’s momentum, a further drop is likely.
Bullish Traders Still Hold the Line
Despite the bearish technical signals, ADA traders are maintaining a bullish outlook. Data from Coinglass shows consistently positive funding rates throughout the month, meaning that long positions are outpacing shorts. This reflects a market sentiment where traders expect Cardano’s price to rise in the short to medium term.
The optimism reflected in these funding rates suggests that a large portion of the market is still betting on a rebound. This bullish sentiment could act as a buffer, helping ADA hold key support levels and avoid a sharper decline, at least in the near term.
Can ADA Hold the Line at $0.74?
At press time, Cardano is trading around $0.74, clinging to a critical support zone. If bearish pressure increases, the next key level to watch is $0.69—a drop below this could erase much of the recent gains. Conversely, if ADA can maintain support and rebuild its correlation with Bitcoin, it may target a recovery to $0.80, potentially invalidating the bearish outlook.
For now, Cardano stands at a crossroads. Whether it regains momentum or slides further will likely depend on broader market trends and a shift in investor confidence.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
Also Read: Cardano’s ETF Momentum: $443M TVL, 71% Approval Odds, and a $1 Price Target
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
