Cardano is struggling to maintain its bullish trend as bulls continue to overcome obstacles to set a new record. The ADA is stuck in a narrow band within an optimistic government pattern that could see a 16% rise materialize if the token exceeds $2,95.
Two Big Hurdles on Cardano's Price
Cardano price has been developing an ascending triangle pattern on the 4-hour chart, with ADA setting higher lows. The token attempted to break the pattern on Sept. 2, but fell short as buyers lost confidence in the cryptocurrency’s uptrend after setting a new all-time high of $3,09.
However, the path toward an all-time high could be a challenge for the ADA for now, as obstacles have emerged that could impede a potential rally for the token. Cardano's price faces strong resistance at the four-hour simple moving average (SMA) at $2,90.
If the cardano price is able to overcome this resistance level, the next hurdle for ADA would be at the upper boundary of the triangle at $2,95, before the token can reach higher aspirations. Adding credibility to this powerful resistance is the IOMAP, which indicates that breaking above this level would be difficult, as 43.340 addresses bought 1,91 billion ADA at an average price of $2,96.
While the chances of the ADA continuing its rally are challenging, the 50's four-hour SMA suggests that Cardano's price would be able to find support at $2,87 if there were a profit-taking range. The IOMAP also supports this line of defense, with the largest cluster in the currency, with 159.100 addresses that purchased 1,73 billion ADA's at an average price of $2,85.
Traders should also note that if Cardano's price falls below the lower boundary of the triangle, the bullish outlook could be nullified. The ADA may then drop lower to mark 100 four-hour SMA before potentially retracing towards the 78,6% Fibonacci extension level at $2,64.
