Cardano Drops as Bitcoin Correlation Weakens to 0.51 Level

• ADA falls while Bitcoin correlation drops to 0.51 from traditional mirroring
• MACD bearish crossover expected within 10 days as technical momentum fades
• Price consolidation likely between $0.83 support and $0.90 resistance levels

Cardano has declined to $0.85 as its correlation with Bitcoin weakened to 0.51. This decoupling from Bitcoin’s price movements marks a shift from ADA’s traditional pattern of mirroring the leading cryptocurrency’s performance.

The reduced correlation occurs as Bitcoin struggles below $115,000, creating conditions where ADA might trade independently of broader market direction. However, this independence has not translated into positive price action for Cardano, which continues facing downward pressure despite the divergence.

Technical Indicators Signal Potential Weakness Ahead

The Moving Average Convergence Divergence indicator shows signs of an approaching bearish crossover as the signal line moves closer to the MACD line. This technical development suggests current bullish momentum may be short-lived, with the crossover expected within the next 10 days.

The weakening technical setup, combined with limited buying interest and broader cryptocurrency market uncertainty, points toward continued downward pressure for ADA. The lack of strong purchasing support adds to concerns about the altcoin’s near-term price stability.

Current price action shows ADA maintaining an uptrend since the month’s beginning despite yesterday’s decline. The token faces strong resistance around $0.90, which may limit upward movement given current market conditions and technical headwinds.

Consolidation Phase Likely as Support Tested

ADA holds above $0.83 support, suggesting potential range-bound trading between this level and $0.90 resistance as mixed technical signals create uncertainty. This consolidation phase could continue as investors assess the cryptocurrency’s direction amid changing market dynamics.

The decoupling from Bitcoin creates both opportunity and risk for Cardano holders, as independent price action could lead to outperformance or underperformance relative to the broader market. Current weakness suggests the latter scenario is playing out despite reduced correlation.

If selling pressure intensifies and ADA breaks below $0.83 support, the next target would be $0.75, which would invalidate the current bullish outlook. Such a move would indicate deeper technical breakdown and potentially accelerate further declines.