Key points
- ADA is trading at $0.40 after losing 5.5% of its value over the past 24 hours.
- The altcoin could climb toward $0.50 if the bullish trend resumes.
ADA could slide 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, lost about 5% of its value in the last 24 hours and is currently trading just above $0.40. Despite this drop, the token could still rally in the short term given solid fundamentals.
The rally may be supported by a rise in Open Interest. According to Coinglass, ADA’s OI now stands at $796 million, up from $662 million a week ago. This increase in Open Interest suggests greater participation and the potential for the price to move higher in the near term.
Growing confidence has encouraged retail investors to take on more risk, which in turn has helped sustain buying pressure.
ADA targets $0.50 despite market correction
The ADA/USD 4-hour chart remains technically bullish and intact despite the recent downward move. At the time of writing, ADA slipped below the 50-period exponential moving average (EMA) at $0.43 and is trading around $0.403.
Short-term outlook remains positive, supported by the moving average convergence divergence (MACD) indicator, which has maintained a positive divergence in recent days.
The 64 reading on the Relative Strength Index (RSI) also indicates renewed buying pressure; if bullish momentum continues, the token could enter overbought territory.
If buyers regain control, ADA could break above the 100-day EMA resistance at $0.505. A sustained rally might push ADA to challenge the 200-day EMA area near $0.593.
Conversely, if the correction persists, ADA could fall back below $0.40 and retest support around $0.3827.