Cardano (ADA) has been on a consistent decline, failing to breach the critical barrier of $1.13 in recent weeks. The cryptocurrency now trades below $1.00, reflecting its ongoing struggles to regain momentum.
Diverging from Bitcoin’s upward trajectory, ADA faces heightened bearish pressure, raising concerns among investors about its near-term outlook.
Cardano Investors Note Losses
Cardano’s realized losses have surged to a monthly high as more investors opt to sell despite the declining price. This trend suggests that sellers are exiting positions at a loss, a pattern that has become the highest observed in two months. Such realized losses highlight the increasing bearish sentiment surrounding ADA.
This price action could prompt a temporary pause among investors as they reevaluate their positions.
As sellers pull back, the market may experience reduced activity, further delaying any immediate recovery for Cardano. The current sentiment reflects caution, with traders waiting for stronger bullish signals before re-entering the market.
Cardano’s correlation with Bitcoin has declined to 0.40 and continues sliding, indicating a growing decoupling from the leading cryptocurrency.
Historically, such a divergence has preceded corrections for ADA, as the altcoin loses the support of Bitcoin’s broader market influence. This declining correlation raises concerns about ADA’s ability to chart a recovery independently.
The weakening connection to Bitcoin could make Cardano more vulnerable to standalone volatility. While Bitcoin often serves as a stabilizing force for the altcoin market, ADA’s divergence highlights its current fragility. Without external bullish cues, the cryptocurrency’s path forward may become increasingly uncertain.
ADA Price Prediction: Reclaiming Lost Supports
Cardano’s price has dropped nearly 10% in the past 24 hours, currently standing at $0.95. The altcoin remains below the critical barrier of $0.99, highlighting its struggle to reclaim key resistance levels amid ongoing selling pressure and weak market sentiment.
The recent decline pushed ADA below the psychological support of $1.00, and the prevailing bearish factors suggest it could fall further to $0.85. Cardano came close to testing this level during yesterday’s session, raising the possibility of further losses if downward momentum persists.
However, a rebound above $0.99 could provide ADA with a foundation for recovery. Reclaiming this support would give the cryptocurrency a chance to target $1.13 as its next resistance level. Such a move would invalidate the bearish outlook and offer renewed confidence to investors looking for a turnaround.
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