coinjournal.net
Key takeaways
- $ADA is trading at $0.40 after losing 5.5% of its value in the last 24 hours.
- The altcoin could rally towards $0.50 if the bullish trend resumes.
$ADA could slip below $0.40
The cryptocurrency market is undergoing a correction following a strong start to the week. Bitcoin has dropped below $92k, while Ether is trading below $3,100 per coin.
$ADA, the native coin of the Cardano blockchain, has lost 5% of its value in the last 24 hours and is now trading above $0.40. However, it could still rally higher in the near term amid strong fundamentals.
The rally could be fueled by growing Open Interest. According to CoinGlass, $ADA’s OI now stands at $796 million, up from the $662 million recorded a week ago. The growing OI hints at the possibility of $ADA’s price rallying higher in the near term.
The confidence encourages retail investors to lean into risk, which contributes to buying pressure.
$ADA eyes $0.50 despite market correction
The $ADA/USD 4-hour chart remains bullish and efficient despite the recent bearish performance. At press time, $ADA has dropped below the 50-day Exponential Moving Average (EMA) of $0.43 and is now trading at $0.403.
Despite that, the coin’s short-term outlook remains bullish, supported by the Moving Average Convergence Divergence (MACD) indicator, which has maintained a positive divergence over the past few days.
$ADA/USD 4H Chart">
The RSI of 64 also shows buying pressure has resumed, with the coin set to enter the overbought region if the bullish bias remains.
If the bulls regain control, $ADA could rally past the 100-day EMA resistance at $0.505. An extended rally could see $ADA challenge the 200-day EMA zone at $0.593.
However, if the correction persists, $ADA could retrace below the $0.40 level and retest the $0.3827 support.