ADA eyes $0.50 despite market correction

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. 

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.