Cardano [ADA]: No powerful upswing in sight even as price hovers near $3

After an impressive rally, Cardano’s [ADA] price appeared to have calmed down. The third-largest cryptocurrency’s weekly gains have reduced to 5.86% due to the latest consolidation in the market which was now valued at $2.13 trillion. Even as ADA hovered close to its recently established all-time high just below $3, the volatility in the ADA market has also taken a hit.

Over the past 24-hours, Cardano [ADA] noted a minor surge of 1.29% and was exchanging hands at $2.85. At the time of writing, the digital asset recorded a market cap of $90.52 billion and a 24-hour trading volume of $4.48 billion.

Cardano [ADA] Daily Price Chart:

The volatility in the market has been moderate over the past few weeks as ADA posted an explosive rally. Despite being quite lower than the mid-May levels, the volume had firmly supported the uptrend. However, it was on a gradual decline since the 23rd of August which can potentially invalidate bullish cues.

The moving averages, on the other hand, were at their ideal positions hovering below the ADA price candles. The 50 DMA [Pink] continued to surge higher after a bullish crossover with the 100 DMA [Blue]. Despite the stagnancy in the market, the 200 DMA [Yellow] has failed to reclaim the two moving averages.

Awesome Oscillator’s [AO] declining red closing bars signalled a weak bearish momentum in ADA’s price. The MACD also depicted a similar trend as it sustained a bearish cross for nearly six weeks. The daily Relative Strength Index [RSI] did not look promising either as it showed an overbought reading after bearish divergence.

According to the above charts, sellers have the upper hand. Hence, Cardano could test the $2.53 support area. In case of a damaging fall, ADA could also slide to another crucial support region of $1.9. The nearest resistance, on the other hand, stood at $2.9.