- ADA’s 0.14 correlation with Bitcoin places it at further risk despite recent correction
Bulls might help the token rise towards $0.55 in the short term
Cardano‘s [ADA] value decreased significantly in the past 24 hours, dropping by 13.27% and reaching a price of $0.50. Earlier in the day, ADA had even touched a low of $0.46 on the price charts.
Cardano underperformed among the top 10 cryptocurrencies, resulting in greater losses for its investors. Consequently, the count of ADA holders experiencing losses rose accordingly.
According to data from IntoTheBlock, approximately 36% of ADA investors were seeing profits at the current price point when AMBCrypto checked, while a significant 57% were facing unrealized losses.
BTC might not lend ADA a helping hand
Despite the recent downturn, it’s important to note that Cardano’s poor performance isn’t just a result of this trend. For some time now, the market has been experiencing an early bull run. However, Cardano hasn’t kept pace with other coins during this period. This has led many investors to question if and when Cardano will help its holders recoup their losses in this cycle.
One challenge is the weak connection between ADA‘s price movement and Bitcoin [BTC]. While Bitcoin influences the prices of many top altcoins strongly, ADA’s correlation is only 0.14. This means that although Bitcoin’s price surge might occur, it doesn’t automatically imply that ADA will recover as well.
In addition to the near-term prediction, the future perspective for ADA appeared uncertain based on the behavior of certain large investors.
Lower conviction, lower prices?
Based on AMBCrypto’s investigation of transaction data, the amounts of ADA held by larger investors (1 million to 1 billion tokens) have been decreasing. Some of these whales have sold off their ADA holdings.
As of March 15, this group representing 1-10 million individuals controlled 16.70% of the entire stock. Yet, currently, their proportion has decreased slightly to approximately 16.20%.
During the same timeframe, those with assets between $100 million and $1 billion originally held approximately 7.01%. Yet, by the time of publication, their percentage had dropped to 5.92%.
![Cardano – Why Bitcoin won’t save ADA’s price and whales just might](https://ambcrypto.com/wp-content/uploads/2024/04/cardano-ada-whale-balance.png)
This action indicates a waning belief in Cardano’s future prospects based on recent behavior. At present, the RSI reading was 31.76, signaling that buyers were attempting to lift ADA from oversold territory. Prior to this, the price downturn had driven the RSI down to 19.53, hinting at intense bearish pressure.
With strong buy-in during dips, there’s a good chance that Cardano (ADA) will rise to around $0.55. However, if the support isn’t sufficient, this bullish prediction could be wrong, and ADA may continue bouncing between $0.49 and $0.52 in the near future.
![Cardano – Why Bitcoin won’t save ADA’s price and whales just might](https://ambcrypto.com/wp-content/uploads/2024/04/cardano-ada-price-and-momentum.png)
Read Cardano’s [ADA] Price Prediction 2024-2025
Furthermore, there are other elements, aside from those already mentioned, which could influence ADA‘s future direction. Looking ahead, the way price behaves following Bitcoin’s halving may decide whether it’s beneficial to keep holding ADA.
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2024-04-14 03:03