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Cardano defies market-wide downtrend as correlation to Bitcoin plummets

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After facing some overt weakness earlier this week, Cardano’s bulls have come back swinging, propelling ADA up by nearly four percent as the aggregated crypto market flashes some signs of weakness.

Today’s upswing coincides with a trend of the cryptocurrency breaking its correlation with Bitcoin. If this trend persists in the near-term, it could continue rallying despite BTC flashing warning signs to investors.

One trader is now noting that it is “time to pay attention” to ADA due to it rapidly approaching a crucial resistance level that has previously proven to be insurmountable.

If it can shatter this level as it continues decoupling with BTC, the token could be well-positioned to start forming another leg higher.

Cardano rallies by nearly 4% as the crypto market flashes signs of weakness

At the time of writing, Cardano is trading up 3.5 percent at its current price of $0.085. This marks a notable climb from daily lows of $0.081 that it set earlier this morning.

This past Saturday, ADA’s price took a major hit as the entire crypto market began reeling lower. It fell as low as $0.076 before buyers were able to step up and slow the decline.

In the time since it has been marching higher and is beginning to face some resistance around $0.084.

This price has proven to be a powerful resistance level over the past few weeks, and it does appear that this is the only thing stopping it from reaching its year-to-date highs of $0.089.

While pointing to this crucial resistance, one pseudonymous analyst who goes by the name “Bagsy” explained that it is “time to pay attention” to Cardano, as a firm break above this level would be technically significant.

Cardano ADA
Image Courtesy of Bagsy (Chart via TradingView)

If this level is broken, there is a good chance that buyers will then target a move to $0.09, where its all-time highs currently sit.

ADA breaks correlation with Bitcoin during its latest movement 

Over the past couple of weeks, Cardano has been shattering its correlation to Bitcoin.

Data from analytics platform IntoTheBlock shows that ADA was highly correlated to BTC between January and mid-May. This correlation began degrading in mid-May and just reached yearly lows this week.

Data via IntoTheBlock

Because Bitcoin has been trading sideways over the past several weeks and is currently showing some signs of weakness, this decoupling trend will likely persist if Cardano can shatter its near-term resistance.

It remains unclear as to whether or not ADA’s strong uptrend will be able to extend further if the aggregated crypto market sees a violent downturn in the days and weeks ahead.

Cardano, currently ranked #11 by market cap, is up 3.38% over the past 24 hours. ADA has a market cap of $2.16B with a 24 hour volume of $262.3M.

Cardano Price Chart

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