Ad
News
Cardano defies market-wide downtrend as correlation to Bitcoin plummets Cardano defies market-wide downtrend as correlation to Bitcoin plummets
🚨 This article is 5 years old...

Cardano defies market-wide downtrend as correlation to Bitcoin plummets

with insights from IntoTheBlock
Cardano defies market-wide downtrend as correlation to Bitcoin plummets

Photo by Eduardo Drapier on Unsplash

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 Market Data

At the time of press 9:43 pm UTC on Jun. 29, 2020, Cardano is ranked #11 by market cap and the price is up 3.38% over the past 24 hours. Cardano has a market capitalization of $2.16 billion with a 24-hour trading volume of $262.3 million. Learn more about Cardano ›

Cardano

9:43 pm UTC on Jun. 29, 2020

$0.08

3.38%
Crypto Market Summary

At the time of press 9:43 pm UTC on Jun. 29, 2020, the total crypto market is valued at at $260.21 billion with a 24-hour volume of $53.91 billion. Bitcoin dominance is currently at 64.71%. Learn more about the crypto market ›

Mentioned in this article
People were interested in these podcasts
Play Episode
35min
CryptoSlate SlateCast
How Layer3 is reshaping on-chain user value - Brandon Kumar explains
CryptoSlate’s SlateCast recently welcomed Brandon Kumar, co-founder of Layer3, to discuss the platform’s mission to revolutionize crypto engagement through user-owned value. Joined by CryptoSlate’s Editor-in-Chief Liam “Akiba” Wright and CEO Nate Whitehill, Kumar shared insights into Layer3’s business model, future goals, and the broader trends shaping the crypto industry.Redefining User-Owned ValueLayer3’s core mission centers on "user-owned value," a concept that flips the traditional advertising model on its head. Kumar explained, “When a user is spending time on Layer3, they're actually able to earn, in addition to discovering and finding protocols relevant to their needs and interests.” Unlike traditional platforms like Google or Facebook, which monetize user attention for corporate profit, Layer3 ensures users share the economic value generated from their activity.By fostering this shift, Layer3 provides users a more direct connection to protocols and projects within the crypto ecosystem. Kumar elaborated,“What we're trying to basically convey is this notion of a user who spends time but also earns economic value while being advertised to.”The Journey from Traditional Finance to CryptoKumar’s background in traditional finance significantly shaped his approach to Layer3. He previously worked at Accolade Partners, a prominent alternative asset manager, where he gained experience in venture capital and technology investments.“We looked at what was happening in crypto venture and said it resembles a lot of what was happening in the 80s and 90s within traditional venture capital,” Kumar noted.This unique perspective allowed Kumar to recognize the potential of the crypto space early on. He emphasized that his financial experience taught him the importance of robust business models and defensibility. “Understanding business models and thinking about them in a dispassionate way was essential,” he said, adding that the experience helped him make strategic choices in La
CryptoSlate SlateCast
Redefining data sovereignty: Alex Puig on blockchain and AI interoperability
In a recent episode of CryptoSlate's SlateCast, Alex Puig, the founder of Context Protocol, joined CryptoSlate Editor-in-Chief Liam “Akiba” Wright and CEO Nate Whitehill to discuss the critical importance of semantic data, data sovereignty, and the future of AI-driven interfaces. Puig shared insights on how blockchain-based solutions can transform data verification and accessibility in an AI-dominated world.From Blockchain Beginnings to Data SovereigntyAlex Puig’s journey into blockchain technology began with his fascination for Bitcoin and its potential to redefine traditional systems of trust. Over the years, his focus shifted from decentralized identity systems to solving challenges around data ownership and interoperability. He emphasized, “If I can own my tokens, maybe I can own my own data,” reflecting his vision for blockchain as a tool for personal and institutional empowerment.Puig explained how Context Protocol is working to create verified knowledge graphs and semantic data standards, ensuring data interoperability across platforms.“Semantic data enables us to achieve true interoperability, allowing our information to be read and utilized by any system,” Puig noted.The Power of Verified DataOne of the key challenges Puig identified is the lack of verifiable data for AI systems. “Being able to verify data is the most important thing,” he stressed, highlighting use cases like private health records or business information that need secure verification. Context Protocol tackles this issue by linking semantic data structures with blockchain-based verification. This approach ensures trust in AI interactions, preventing the spread of misinformation and enabling more accurate machine learning.Puig elaborated on practical implementations, such as enabling businesses to manage their data autonomously. He provided the example of local governments, stating,“Cities like Madrid and Barcelona are exploring how businesses can update their information, such as restaurant
CryptoSlate SlateCast
Bill Miller IV shares his insights on value investing and Bitcoin
In a recent episode of SlateCast IRL, CryptoSlate Senior Analyst James Van Straten sat down with Bill Miller IV, the Chief Investment Officer & Portfolio Manager of Miller Value Partners. The discussion touched upon a variety of topics, from the principles of value investing to the burgeoning world of Bitcoin and cryptocurrencies.The Legacy of Value InvestingBill Miller IV provided insights into the principles of value investing that his family has long championed. He explained:“We look for undervalued companies or ideas and try and buy them in an effort to outperform an index. We’ve been doing this as a family for a very, very long time.”Miller highlighted his father’s remarkable achievement of beating the market for 15 consecutive years, a record he aspires to emulate. This long-term approach focuses on identifying stocks trading at a discount to their intrinsic value, a philosophy that extends to Miller’s views on Bitcoin.Bitcoin’s Unique PositionWhen discussing Bitcoin, Miller highlighted several key aspects that distinguish Bitcoin from other cryptocurrencies:“I think when you just take a step back and think about the technology objectively within the landscape of crypto, the asset has several things that really set it apart from the rest of the crypto landscape.”He emphasized three key aspects that differentiate Bitcoin:Causal Ambiguity: The unknown creator adds to its mystique and wide acceptance.First Mover Advantage: Bitcoin’s early establishment has created a robust ecosystem around it.Proof of Work Mechanism: This secures Bitcoin uniquely compared to other assets.Investment Strategies and ETFsMiller Value Partners has been at the forefront of integrating Bitcoin into its investment strategies. Although they do not offer a Bitcoin-specific ETF, their broad mandate, ETF includes substantial investments in Bitcoin-related stocks. Miller elaborated:“One of the reasons we are doing as well as we are right now is because we have been investing in Bitcoin-relate
CryptoSlate SlateCast
Joe Consorti on Bitcoin's role in global macroeconomics
Bitcoin and Macro analyst Joe Consorti joins to dig into how US macro data is impacting Bitcoin and the latest on the Bitcoin reserve.Credits Thanks to Liam 'Akiba' Wright for hosting and producing the episodes.   Connect with CryptoSlate: - X - Substack - Google News - Telegram - Instagram

Hide All Glossary Terms