Despite the market correction, ADA eyes $0.50
Key receivers
ADA is trading at $0.40 after losing 5.5% of its value in the last 24 hours.
If the bullish trend continues, the altcoin may rally towards $0.50.
ADA may slip below $0.40.
Following a strong start to the week, the cryptocurrency market is undergoing a correction. Bitcoin has fallen 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 rise in the near term amid strong fundamentals.
The rally could be fueled by rising open interest. As CoinGlassADA's OI now stands at $796 million, compared to $662 million recorded a week ago. A growing OI hints that ADA prices may rise in the near future.
Confidence encourages retail investors to close to the risk, which contributes to buying pressure.
Despite the market correction, ADA eyes $0.50
ADA/USD's 4-hour chart remains bullish and bearish on recent bearish performance. At press time, ADA has dropped below its 50-day exponential moving average (EMA) of $0.43 and is now trading at $0.403.
Despite this, the coin's short-term outlook is supported by the Moving Average Convergence Divergence (MACD) indicator, which has maintained a positive divergence over the past few days.
The 64 RSI also shows that buying pressure continues, the coin is poised to enter overbought territory if the bullish bias continues.
If the bulls regain control, ADA could break through the 100-day EMA resistance at $0.505. An extended rally could see ADA challenging the 200-day EMA zone at $0.593.
However, if the correction continues, ADA may retrace below the $0.40 level and test the $0.3827 support.
