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  • Cardano price is contained inside a descending triangle pattern on the 4-hour chart.
  • The digital asset has experienced a massive surge in network activity in the past week.
  • According to several indicators, there is only one key resistance ahead for ADA bulls.

Cardano has been trading in a downtrend for several days on the 4-hour chart, and the price is currently located at a key support level for the bulls. Despite the weak price action, Cardano has seen a massive spike in the number of new addresses joining the network.

Cardano price could see a massive breakout as on-chain metrics strengthen

On the 4-hour chart, Cardano price has formed a descending triangle pattern with a critical support level at $1.16. The digital asset must defend this point at all costs, and it seems that odds favor the bulls according to various indicators.

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ADA Network Activity

The number of new addresses joining the Cardano network in the past week has increased by 43% despite the significant price decline the digital asset has experienced. Similarly, the amount of active addresses also increased by 30% in the same time period giving ADA buyers the upper hand.  

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ADA IOMAP chart

The In/Out of the Money Around Price (IOMAP) chart shows one crucial resistance area between $1.17 and $1.20 with a volume of 4.6 billion ADA. This coincides with the upper resistance trendline of the descending triangle pattern.

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ADA/USD 4-hour chart

A breakout above the upper boundary would yield bulls an 8% upswing towards $1.31. This move is calculated using the height between the lower trendline and the upper boundary of the pattern as a reference.

On the other hand, failure to hold the key support level at $1.163 would quickly drive Cardano price towards $1.06.