Cardano [ADA] dodges fatal correction below $2 but sell signal continued to erupt

The latest run-up pushed Cardano [ADA] to the fourth spot on the leaderboard as Binance Coin [BNB] eclipsed the former. ADA has been on a sharp decline since the first week of September. Last week’s recovery, however, paled in comparison to its peer tokens. So far, ADA has not been able to reverse its weekly losses, and prospects of a sustainable rally did not appear.

Over the past 24-hours, Cardano [ADA] depreciated by 3.44% and was currently priced at $2.18. At the time of writing, the crypto-asset recorded a market cap of $70.22 billion and a 24-hour trading volume of $2.2 billion.

Cardano [ADA] Daily Price Chart:

The ADA price candles were turned away from the 50 daily moving average [Pink] despite uptrend attempts. The 100 [Blue] and the 200 [Yellow] DMAs, on the other hand, continued to hover below the candlestick arrangments. ADA has been oscillating between the trendlines of the bullish descending channel for almost a month. However, the recent breakout to the upside was rather short-lived as the asset faced significant sell pressure near the $2.3 region. The volatility in the market has also taken a hit which could signal a consolidation phase. The low volume further hindered ADA’s growth trajectory.

Technicals depict bearish impetus might not be over yet

The formation of green candles of Awesome Oscillator [AO] depicted a much-needed switch to bullish momentum. But the Chaikin Money Flow [CMF] failed to climb higher and formed a bearish divergence as the capital outflow from the coin market continued. The daily Relative Strength Index [RSI] also settled below the 50-median line as the bulls faced severe sell pressure at every minor run-up.

Cardano’s uptrend prospects look bleak at the moment. Instead, the crypto-asset may consolidate below the immediate resistance level of $2.46 and $1.92 support area.