Bitcoin’s declining dominance could set-off altseason

The price of Bitcoin remained consolidated over the past couple of weeks. The digital asset has been returning 27.54% YTD and has been walking a tight rope. The strong correlation between Bitcoin and altcoins have resulted in the latter mirroring the sentiment of the Bitcoin market. However, there are several alts that have managed to rake in great returns for the investors despite a dull market. Cardano [ADA] was one such alt that wasn’t waiting around for the Bitcoin bulls.

The tenth-largest cryptocurrency on the CoinMarketCap’s list, Cardano has been witnessing tremendous momentum since the start of the year. According to data, ADAUSD was returning almost 150% YTD to its investors. Even though the coin’s value was slashed 52% during the COVID-19 driven crash, it managed to climb back up, without a major fall since. The lowest value recorded by ADA was of $0.0170, after which it shot up to $0.0845, a 395% boost within 96 days.

The last time ADA’s price was so highly valued was during the July 2019 surge and as the coin remained closer to its key resistance, another boost in its price may cause it to breach above $0.1. The driving reason for such an optimistic market could be the Shelley rollout. This was an organic growth driven by volume, thus the impact of the Bitcoin market was maintained to a distance. Recently, IOHK announced the beginning of the roll-out of Shelley between 30 June and 7 July, which would be an important inflection point for ADA price, but breaking out of the Bitcoin clutches would be difficult for the altcoin.

According to trader @scottmelker on Twitter, BTC’s dominance could just be hanging by the thread. The trader noted:

“For those of you that believe in charting this thing, it’s dangling on the edge of the precipice. If it breaks down, you know what that could mean?
Something that rhymes with fault reason.”

The alt season may just be around the corner as the Bitcoin dominance takes a leap.

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