Key Points
- ADA trades near $0.40 after losing 5.5% in the past 24 hours
- The altcoin could rise to $0.50 if bullish momentum returns
ADA Could Dip Below $0.40
The cryptocurrency market is undergoing a pullback after a strong start to the week. Bitcoin has eased from recent highs below $92,000, while Ether is trading under $3,100 per coin.
ADA, the native token of the Cardano blockchain, lost about 5% in the last 24 hours and is now trading just above $0.40. Despite the short-term decline, the token retains the potential for a rebound supported by solid underlying fundamentals.
One factor that could fuel a recovery is rising open interest. According to CoinGlass, ADA’s open interest is roughly $796 million, up from $662 million recorded last week. Growing open interest can indicate renewed speculative activity and the possibility of higher prices in the near term.
The improving sentiment has encouraged some retail investors to increase exposure to risk, creating buying pressure that can support a turnaround.
ADA Eyes $0.50 Despite Market Pullback
The 4-hour chart for ADA/USD still shows an overall uptrend despite recent downward pressure. At present, ADA has slipped beneath the 50-period exponential moving average (EMA) on the 4-hour chart, near $0.43, and is trading around $0.403.
Short-term momentum, however, remains skewed to the upside. The Moving Average Convergence Divergence (MACD) indicator has preserved its positive spread over the past few days, signaling that bullish momentum could resume.
The Relative Strength Index (RSI) sits around 64, which suggests buying pressure has returned and the token could enter overbought territory should the bullish bias continue.
If bulls regain control, ADA could break above the 100-period EMA near $0.505. A sustained rally might push the token toward the 200-period EMA zone around $0.593.
Conversely, if the correction persists, ADA may slip below the $0.40 mark and retest support near $0.3827.