Key takeaways
- ADA is trading at $0.40 after losing 5.5% of its value over the past 24 hours.
- The altcoin could move toward $0.50 if the bullish trend resumes.
ADA could dip below $0.40
The cryptocurrency market is undergoing a correction after a strong start to the week. Bitcoin fell below $92,000, while Ether is trading under $3,100 per coin.
ADA, the native token of the Cardano blockchain, has lost about 5% of its value in the past 24 hours and is currently trading just above $0.40. Despite the recent pullback, the token could still see short-term gains supported by solid fundamentals.
One potential catalyst is rising open interest. According to CoinGlass, ADA’s open interest currently stands at $796 million, up from $662 million a week ago. Increasing open interest can indicate growing market participation and the potential for price appreciation in the near term.
Improved market confidence is encouraging retail investors to take on more risk, which contributes to buying pressure.
ADA points to $0.50 despite market correction
On the 4-hour ADA/USD chart, the structure remains intact despite recent bearish moves. At the time of writing, ADA has slipped below the 50-period exponential moving average (EMA) at $0.43 and is trading around $0.403.
Short-term indicators remain constructive: the Moving Average Convergence Divergence (MACD) has maintained a positive divergence in recent days, signaling that upward momentum could return.
The Relative Strength Index (RSI) sits near 64, indicating that buying pressure has resumed and that the token could enter overbought territory if the rally continues.
If bulls regain control, ADA could break the 100-period EMA resistance at $0.505. A sustained rally might then target the 200-period EMA region around $0.593.
Conversely, if the correction persists, ADA could fall back below $0.40 and retest support near $0.3827.