Cardano (ADA) has experienced a prominent 7% drop in the last 24 hours, making it one of the worst altcoins of the day.
This decline follows the trend of ADA beginning to dissociate from Bitcoin, indicating a change in market conditions that could indicate Altcoin trouble in the near future.
Cardano travels away from Bitcoin
Cardano’s correlation with Bitcoin has dropped to 0.51, indicating that altcoin is away from Bitcoin’s movement. Traditionally, the ADA has reflected Bitcoin’s price action, but this separation has become more clear as Bitcoin struggles, falling below $115,000 today.
This suggests that it could present a bullish ADA scenario and may not be affected by the Bitcoin recession. However, this separation does not bring about Cardano’s positive price action, which is under pressure despite the shift.
Because of the lack of correlation with Bitcoin, the ADA can stand independently, but Altcoin’s recent performance suggests that this is not the case. Despite Bitcoin’s difficulties, ADA prices continue to fall, reflecting concerns from the broader market.
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Technical indicators show Cardano’s bearish outlook. Moving average convergence divergence (MACD) indicates a sign of a potential bearish crossover. The signal line is approaching the MACD line. This suggests that the current bullish momentum will be short-lived.
The crossover is expected to occur within the next 10 days, further indicating that the ADA could face continuous down pressure in the coming weeks. Coupled with the overall bearish trend in the crypto market, the ADA’s lack of strong buying forces points to a further decline unless major changes occur.
Ada Price is unlikely
Cardano’s price is currently at $0.85, reflecting a 7% decline over the past 24 hours. Nevertheless, the ADA has been on the uptrend since the beginning of the month. However, as the ADA faces strong resistance at a price of $0.90, it could be difficult to maintain its upward momentum given the current market situation.
Beyond the $0.83 support, Cardano can enter the under $0.90 integration phase with a mixed signal from both technical indicators and broader market sentiment. Trading bound to this range could continue as investors weigh the uncertainty surrounding Altcoin’s upcoming outlook.
If ADA owners start selling out positions, the price could easily slip through a support level of $0.80 and reach $0.75. Such a move negates Cardano’s current bullish outlook and suggests a deeper slump in prices.
Post Cardano Price’s recovery to one dollar was thwarted by another bearish crossover that first appeared in Beincrypto.
