Cardano Coin ($ADA )
) is going through a critical period, having recently faced several failed upward attempts, leading many traders to be wary of an impending downturn. However, a large portion of investors still maintains an optimistic outlook, expecting continued upward movement despite negative indicators.
📉 Concerning separation from Bitcoin
Currently notable is that Cardano's correlation with Bitcoin has dropped to -0.27, meaning that ADA is moving independently of general market trends, which is a concerning precedent. Bitcoin recently reached a new historical peak, while ADA failed to chase the rise, indicating potential weakness in the currency's price momentum.
📚 Lessons from history
Historical data shows that negative divergence between Cardano and Bitcoin often precedes sharp price corrections. If this pattern repeats, ADA may face a significant decline in the coming days.
📊 But there are reasons for optimism…
Despite this data, the funding rate for futures contracts shows that long positions still dominate the market. Continuous positive funding reflects traders' insistence on bullish bets, contributing to a kind of psychological protection against selling pressures.
💡 Current price of Cardano: $0.75
The currency still maintains important technical support at this level. Amid the oscillation between rising hopes and descending risks, Cardano remains in a fragile equilibrium.
🔻 If selling pressures continue, ADA may slide to a support level of $0.69, which would erase a significant portion of this month's gains and increase investor concerns.
🔺 Conversely, if the correlation with Bitcoin improves and the market regains its confidence, the currency may rebound from the $0.74 level upwards towards $0.80, which would invalidate the negative scenario and enhance hopes for ADA's return to its upward trajectory.
📌 Summary:
Cardano stands at a crossroads. Between solid support at $0.74 and positive funding indicators on one side… and a separation from the historical market movement and the potential for correction on the other.
The coming weeks will be crucial in determining the direction of the currency.
#Cardano #ADA #Market_Analysis #Cryptocurrencies #Darar_Al-Hadari