Is Cardano going to crash again now that it is loosening from Bitcoin?

The course of Cardano (ADA) seems to go his own way. While Bitcoin (BTC) recently taped a new all-time high, Cardano remained behind. The correlation between the two is even negative: -0.27 according to figures from TradingView. That means that Cardano is currently moving against Bitcoin’s trend.

That development is striking. In the past, such a negative correlation at Cardano regularly led to price falls. Investors are now wondering whether the history is repeating itself.

Funding Rate remains positive

At the same time, part of the ADA community remains particularly optimistic. The Funding Rate, which shows the relationship between lung and short positions, was predominantly positive throughout the month. This means that more traders focus on an increase than on a fall in the price.

That positive expectation ensures a solid undercurrent of trust. As long as this trust continues, the ADA could help to limit price falls.

At the time of writing, the Cardano rate records around $ 0.74. This moves the cryptocurrency just above an important level of support. According to Data from TradingView, this is a crucial limit. If the price drops below this level, the following support is around $ 0.69.

A decrease to that point would be canceled out a good part of the profit of the past few weeks. The chance of such a correction grows if the negative connection with Bitcoin persists.

Less activity on the exchanges

Moreover, the trade volume on the exchanges has fallen considerably in the past week. Ada was traded in that period, which means a decrease of around 14.5 percent compared to the week before.

Yet not everything is negative. If the correlation with Bitcoin recovers and Ada manages to hold the support of $ 0.74, a recovery towards $ 0.80 is possible. That would invalidate the negative scenario and again fuel the confidence of investors.

For the time being, Cardano is balancing between hope and doubt. In the coming days, the direction that the course takes can become crucial. Much will depend on how strong the confidence of investors remains, and whether the market knows how to turn the negative sentiment.