Cardano Defies Market Downtrend As Bitcoin Correlation Drops

Cardano defies the market downtrend as its correlation with Bitcoin plummets, after facing weakness over the past week and the bulls came back swinging. In the latest Cardano ADA news, the altcoin is propelling up by nearly 4 percent and it could continue rallying despite Bitcoin flashing major warning signs to the investors.

One trader is now noting that it is time to pay attention to ada because it is steadily approaching a crucial resistance level that it was proven to be insurmountable before. If ADA manages to surpass this level and continues decoupling with Bitcoin, the token could be well-positioned to start forming another higher level. At the time of writing, Cardano is trading up by 3.5 percent at a price of $0.085 which marks a notable climb from the daily lows of $0.081 which were seen earlier in the day.

ada chart
Image Courtesy of Bagsy (Chart via TradingView)

The past Saturday, ADA’s price was heavily hit as the entire crypto market started going down. It fell as low as $0.076 before the buyers were able to step up and stop the decline. In the time since it has been marching higher, it started facing some resistance around the $0.084 level. this price level proves to be a huge resistance level over the past week and it seems that this is the only thing that stops it from reaching a yearly high of $0.089.

While still pointing the crucial resistance, one analyst under the name Bagsy, explained that it is time to pay attention to Cardano because a strong break above this level will be technical important. If this level is broken, there will be a good chance that buyers will target a new move to $0.09 where the all-time high stands. Over the past few weeks, Cardano defies the correlation to Bitcoin as per the data analytics platform IntoTheBlock which shows ADA correlating to Bitcoin between January and mid-May.

ada price chart
Data via IntoTheBlock

The correlation started degrading in mid-May and then just reached yearly lows earlier this week. Because bitcoin was trading sideways over the past few weeks and is now showing signs of weakness on the market downtrend, the trend will continue if Cardano surpasses the near-term resistance. It still remains to be seen whether ADA will be able to extend further if the aggregated crypto market sees a violent downturn in the days ahead.

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