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Cardano (ADA) Price Dips Below $1

Cardano (ADA) Price Dips Below $1

Cryptocurrency News

Cardano (ADA) Price Slides Below $1

Cardano (ADA) has continued its downward trend, failing to break the $1.13 resistance level in recent weeks. The cryptocurrency is now trading below $1.00, indicating a struggle to regain upward momentum. This decline comes despite Bitcoin's recent upward trajectory, highlighting a growing divergence between the two cryptocurrencies.

Increased Cardano Realized Losses

The increase in Cardano realized losses has reached a monthly high, suggesting a significant number of investors are selling at a loss. This pattern, the most pronounced in two months, reflects increasing bearish sentiment surrounding ADA. This selling pressure could lead to a temporary market lull as investors reassess their holdings.

Cardano Realized Profit/Loss
Cardano Realized Profit/Loss. Source: Santiment

Decoupling from Bitcoin

The correlation between Cardano and Bitcoin has dropped to 0.40 and continues to fall, indicating a significant decoupling. Historically, this divergence has preceded corrections in ADA's price as it loses support from Bitcoin's overall market influence. This decreased correlation increases concerns about ADA's ability to recover independently.

This weaker link to Bitcoin could make Cardano more susceptible to its own volatility. While Bitcoin often provides stability to the altcoin market, ADA's divergence highlights its current vulnerability. Without positive external factors, its future trajectory remains uncertain.

Cardano Correlation With Bitcoin
Cardano Correlation With Bitcoin. Source: TradingView

ADA Price Prediction: Potential for Further Decline

ADA's price has fallen approximately 10% in the last 24 hours, currently trading around $0.95. The cryptocurrency remains below the key support level of $0.99, suggesting continued selling pressure and weak market sentiment. The recent decline has pushed ADA below the psychologically important $1.00 mark, increasing the likelihood of a further drop to $0.85. This level was nearly tested yesterday, indicating potential for further losses if the downward trend persists.

However, a price rebound above $0.99 could provide a foundation for recovery, potentially allowing ADA to target $1.13 as the next resistance level. Such a move would negate the current bearish outlook and restore investor confidence.

Cardano Price Analysis
Cardano Price Analysis. Source: TradingView

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions are subject to change. Conduct thorough research and consult a professional before making any investment decisions.

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