Cardano price has been quietly grinding higher through the summer, trading inside a rising channel that’s kept price action orderly but frustrating for traders waiting on a breakout.
Popular analyst Ali believes ADA is now approaching a critical level. If buyers can finally break through, he says, Cardano could be setting up for its next major rally.
What you'll learn 👉
What the ADA Chart is Showing
On the 4H chart, Cardano price has been moving neatly between parallel trendlines. The lower boundary has acted as solid support every time price dipped, while the upper band has repeatedly capped rallies.
At the moment, ADA is flirting with the middle of this channel but everybody is looking for resistance just above it.
Ali states that ADA price has tested this level already a number of times, and every time it has been slightly less forceful than the last.
That kind of repeated testing often means sellers are running out of steam. If the bulls can force a breakout this time, the move could pick up a good head of speed since momentum would then start being on their side.
Why This Level Matters
The resistance level isn’t just a technical line on the chart, it represents a psychological barrier too. Traders have been watching it for weeks, waiting for confirmation that Cardano has the strength to push higher.
If ADA clears it, the breakout would act as a confidence boost, likely pulling in more buyers who have been sitting on the sidelines.
This setup also fits a familiar pattern. Altcoins often consolidate in a channel like this, building pressure as buyers defend higher lows. Once the ceiling cracks, the energy that’s been building is released, and the rally can happen fast. Ali believes ADA price is right on the edge of such a move.
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What Could Happen if Cardano Fails
Of course, nothing is guaranteed. If ADA gets rejected again, the price could slip back toward the lower boundary of the channel.
That area has been tested before and has held well, so bulls would be expected to defend it again. A pullback there wouldn’t end the broader uptrend, but it would keep Cardano locked in sideways action for longer.
The real risk would be a clean break below the channel’s support. That would shift the structure from bullish consolidation to a potential trend reversal. For now, though, the channel is intact, and the market seems comfortable with the range.
Finally, Cardano price is sitting at a key crossroads. Analyst Ali has made it clear that resistance just above current levels is the deciding factor. Break it, and ADA could be off to the races with momentum on its side. Fail again, and the altcoin stays stuck in its channel until the next attempt.
For traders, the message is simple: keep an eye on the resistance standing in Cardano’s way. The way ADA reacts here will likely shape its trend through September.
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