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Is Cardano preparing to repeat the historic price collapse after decoupling from Bitcoin?

Cardano has faced several failed attempts to rise recently, a pattern that usually leads to bearish reactions from traders.

However, unlike many altcoins, a strong faction of ADA investors remains optimistic, expecting the price to rise despite these setbacks.

Cardano is losing its grip

The correlation between Cardano and Bitcoin has dropped to -0.27, indicating that ADA is currently moving independently of Bitcoin's price trends. This decoupling is concerning as Bitcoin has recently reached a new all-time high (ATH), and ADA's failure to follow suit may indicate weakness in the altcoin's momentum.

Historically, negative correlations like this have preceded price corrections for Cardano. If this trend repeats, ADA may face a decline despite mixed signals in the market; Cardano traders remain optimistic, as reflected in the funding rate. Positive funding rates have mostly shown throughout the month that long positions have dominated short positions. This indicates that traders expect ADA's price to rise and maintain a strong optimistic outlook. ADA's price may rebound again

The current price of Cardano is $0.67, maintaining critical support at $0.66. If the price fails to hold this support, ADA may see further declines, potentially testing the level.