Key takeaways
- ADA traded around $0.40 after losing 5.5% of its value over the past 24 hours.
- The altcoin could climb toward $0.50 if bullish momentum resumes.
ADA may slip below $0.40
The crypto market is undergoing a correction after a strong start to the week. Bitcoin fell below $92,000 while Ether traded under $3,100 per coin.
ADA, the native token of the Cardano blockchain, lost about 5% of its value over the last 24 hours and is trading just above $0.40. Despite the short-term pullback, the token still has potential to move higher in the near term thanks to solid fundamentals.
Any renewed rally could be supported by rising open interest. According to CoinGlass, ADA’s open interest now stands at $796 million, up from $662 million recorded a week ago. Increasing open interest suggests the possibility of higher ADA prices if bullish positioning continues.
Growing confidence has encouraged retail investors to take on more risk, adding buying pressure to the market.
ADA eyes $0.50 despite market correction
The 4-hour ADA/USD chart remains in an uptrend and appears resilient despite recent weakness. At the time of writing, ADA slipped below the 50-period Exponential Moving Average (EMA) at $0.43 and is trading around $0.403.
Nonetheless, the short-term outlook remains bullish, supported by the Moving Average Convergence Divergence (MACD), which has maintained a positive divergence in recent days.
The Relative Strength Index (RSI) at 64 also indicates buying pressure has resumed, and the token could enter overbought territory if bullish momentum persists.
If buyers regain control, ADA could push past the 100-period EMA resistance at $0.505. A sustained rally might see ADA challenge the 200-period EMA zone around $0.593.
However, if the correction continues, ADA could fall back below $0.40 and retest support near $0.3827.