Cardano (ADA) experienced a significant upswing in March, reaching a year-to-date high of $0.4622. Excitement spread among ADA investors as the price climbed, but unfortunately, it was short-lived. The price faced rejection at that level, causing ADA to plummet to the $0.3760 support level.

However, despite this setback, ADA managed to find some stability as the bulls defended this crucial support level. Throughout May, the price of ADA fluctuated above and below the support level, giving hope to investors.

However, the tides turned in June when intense selling pressure gripped the market. ADA, like many other altcoins, found itself caught in the aftermath of regulatory issues with its supposed security label. The market sentiment turned bearish, and altcoins suffered significant losses as a result.

ADA Not A Security: Gensler Once Again Getting Ahead of Himself #Cardano #cardanofeed #ADA #crypto #cardanocommunity #bitcoin #CoinMarketCap #blockchain #cryptocurrency #CardanoADA #btc $ADAhttps://t.co/cwM1SD0Brm

— Cardano Feed ($ADA) (@CardanoFeed) June 14, 2023

Now, the question arises: What lies ahead for ADA as the bearish sentiment continues to loom?

The Correlation Between Bitcoin Price, Altcoin Performance

At the time of writing, Bitcoin (BTC) is trading below the $25,000 level, exerting its influence on the broader cryptocurrency market. The price decline of BTC has had a profound impact on altcoins, causing a ripple effect throughout the entire crypto ecosystem.

Source: Coingecko

Altcoins, including Cardano’s ADA, have been significantly affected by Bitcoin’s downturn. ADA, currently priced at $0.259126 at CoinGecko, has experienced a 7.3% slump in the past 24 hours alone, contributing to a substantial seven-day decline of 22%. These figures illustrate the strong correlation between Bitcoin’s price movements and the performance of altcoins.

Bitcoin, being the largest and most established cryptocurrency, often serves as the bellwether for the entire crypto market. When Bitcoin experiences a price drop, it tends to instigate a domino effect, triggering a widespread sell-off across various digital assets.

This correlation stems from the fact that many altcoin traders and investors use Bitcoin as a benchmark or a base currency for trading.

ADA market cap slightly below $9 billion. Chart: TradingView.com

Furthermore, Bitcoin’s price movements often reflect the overall market sentiment and investor confidence in the cryptocurrency industry. When Bitcoin faces significant challenges or negative news, it creates a sense of uncertainty and fear among market participants. As a result, investors may seek to reduce their exposure to riskier assets like altcoins, leading to a decline in their prices.

Waning Interest In Cardano Bullish Rally

According to data provided by Coinalyze on the four-hour timeframe, it has been observed that the Open Interest (OI) for ADA has been decreasing. The diminishing Open Interest suggests that market speculators are displaying a lack of enthusiasm toward a potential bullish rally for ADA.

ADA Open Interest down. Source: Coinalyze

Similarly, the Spot CVD (Cumulative Volume Delta) has been consistently on a downward trend, highlighting the prevailing bearish sentiment in the market. This further emphasizes the dominance of bearish market forces, indicating a negative outlook for ADA.

Featured image from CoinChapter

Bitcoin (BTC) challenged three-month lows into June 10 as altcoins in particular felt the heat from United States regulatory pressure.

Altcoin bloodbath as exchanges reshape landscape

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $25,483 on the day, down over $1,200 from the previous day’s high.

While showing weakness, Bitcoin was spared the fate of major altcoins, which reacted strongly to delisting that accompanied U.S. legal action against major exchanges.

Trading app Robinhood announced that it would remove support for several cryptocurrencies named in the lawsuit against Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC).

These subsequently hemorrhaged value, with both Cardano (ADA) and Solana (SOL) down nearly 25% in 24 hours at the time of writing.

“We regularly review the crypto we offer on Robinhood,” the firm stated on its website.

“Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET.”

“As expected, following this week’s action on the regulatory front, we saw some delistings causing market selloff,” Kris Marszalek, CEO of Crypto.com, responded.

“I guess we are in the ‘then they fight you’ stage on the crypto adoption curve. Make no mistake: crypto industry will go through this and emerge stronger than ever.”

Crypto.com confirmed that it would halt its U.S. institutional trading service beginning June 21.

BTC price 200-week trend line support fails

The events had a major impact on the overall cryptocurrency market cap, with Michaël van de Poppe, founder and CEO of trading firm Eight, warning that worse may be to come.

Related: Bitcoin, Ethereum to shake off ‘toothless adversary’ SEC as FOMC looms

As with BTC/USD, should the total crypto cap tally lose its 200-week moving average (MA), this would constitute a clear bear signal. Bitcoin’s moving average trend line currently stands at near $26,400.

“This is not the weekly candle you’d want to see on the total market capitalization for Crypto,” he told Twitter followers alongside a chart.

“Losing the 200-Week MA shouts for downwards continuation on the trend.”

Van de Poppe, like some other popular traders, nonetheless revealed interest in altcoin buys at lower prices.

Accompanying him was Crypto Tony, who predicted “incredible entries” on the table for 2023.

These #Altcoin drops get me way too excited in Crypto as they really do not come by that often

Got some incredible entries lined up later this year. I will share a few later today with you all and they are super realistic .. WHO IS READY

— Crypto Tony (@CryptoTony__) June 10, 2023

For existing traders, however, the damage was done — long liquidations totaled $320 million for June 10, according to data from CoinGlass, with the day not yet over.

Another $70 million in short positions also evaporated.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.