- Cardano’s price performance has lacked clear direction as the token lagged while Bitcoin and Ethereum posted new all-time highs.
- ADA bulls appear to be struggling with the nearest obstacle at the 21-period SMA on the 12-hour chart.
- Only a break above $2.24 would put the 23% rally on the radar.
Cardano price continues to confound forecasts. ADA oscillates between two clearly defined technical levels. Until the “Ethereum killer” can overcome the two key resistance areas, the token can expect a 23% rally towards $2.73.
Cardano bulls ready to face the upcoming hurdles.
The price of Cardano continues to be trapped within a symmetrical triangle pattern on the 12-hour chart, as it displays no clear directional bias. As Bitcoin and Ethereum reached new all-time highs over the past few weeks, ADA lagged behind.
It seems that Cardano’s price is preparing to face hurdles, despite the overwhelming strength of resistances currently intimidating bulls. ADA faces a first hurdle at the 21-period simple moving average at $2.16 on the 12-hour chart. If the “Ethereum killer” manages to break above this level. The next headwind will occur at the 23.6% Fibonacci retracement, coinciding with the 50 SMA at $2.19.
IntotheBlock’s In / Out of Money Around Price (IOMAP) indicates that the aforementioned resistance level would prove difficult for bulls to overcome. This is because it represents the largest group recorded by the technical metric, as 226,650 directions bought 7.82 billion. ADA at an average price of $2.19.
If buyers manage to overcome this stiff hurdle, they would see Cardano price at the upper boundary of the prevailing chart pattern at $2.24. The 23% upside would be on ADA’s radar as bulls attempt to reach $2.73.
The bulls’ journey to the upside target would still be tricky
Momentum Reversal Indicator (MRI) resistance appeared at $2.30. Which is near the 100-period simple moving average and acts as a strong headwind for Cardano price. ADA would also need to break above $2.36, $2.50 and $2.64, which correspond to 38.2%, 50% and 61.8% Fibonacci retracement levels, respectively, before reaching the projected target given by the chart pattern.
However, if there is a surge in sell orders, Cardano’s price may fall towards the lower boundary of the symmetrical triangle at $2.10 to retest the trendline as support. ADA may fall towards the 200-period simple moving average at $2.07, ruining the bullish outlook, and at the same time putting a bearish target of a 23% drop at $1.62 on the radar for the “Ethereum killer”