• Cardano is trading at that apex of a symmetrical triangle as a massive breakout lingers.
  • A break above the 50 SMA on the 4-hour chart will add weight to the expected upswing.
  • The slump in network growth could hamper the bullish outlook and delay the breakout.

Cardano is in the middle of consolidation following a breakdown from the all-time high at $1.49. Support established at $1 allowed bulls to focus on recovery. Meanwhile, ADA is nearing a critical breakout point, likely to see it hit $2.

Cardano technical breakout around the corner

The formation of a symmetrical triangle pattern on the 4-hour chart brings to light a potentially massive breakout to $2. These triangles do not have a bearish or a bullish bias and are created by connecting trendlines. One trendline links a series of decline peaks while the other links a series of ascending lows.

A breakout from the triangle is expected when the price slices through the upper trendline. On the other hand, a breakdown occurs when the price tumbles below the lower trendline. Triangles have precise targets measured from the highest to the lowest points.

Currently, Cardano is likely to make a breakout from the triangle, followed by a 68% upswing to $2. Besides, trading above the 50 Simple Moving Average (SMA) will validate the bullish outlook.

ADA/USD 4-hour chart

ADA/USD 4-hour chart

The Bollinger Bands have reinforced the ongoing consolidation. Cardano has also settled above the middle boundary as bulls fight for a breakout. The squeezing bands hint at a breakout in the near term.

ADA/USD 4-hour chart

ADA/USD 4-hour chart

Looking at the other side of the fence

According to IntoTheBlock, Cardano is currently dealing with decreasing network growth. In other words, the number of newly-created addresses has been decreasing since it topped out at nearly 73,000 on February 20. At the time of writing, unique addresses joining ADA stand at roughly 18,000, representing a 75% downswing.

Cardano network growth

Cardano network growth

It is worth keeping in mind that a slow or declining network growth is a bearish signal. The decrease interferes with the normal token inflow and outflow. Simultaneously, it shows that mainstream adoption is going down, hence hampering both price and network growth.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

This subtle cue suggests Shiba Inu price will see a tumble

This subtle cue suggests Shiba Inu price will see a tumble

Shiba Inu price is presenting quite the tug of war battle during the second trading week of August. Previous outlooks have prophesied on both bearish and bullish sides of the coin, and as of yet, no target has been successfully breached. 

More Shiba Inu news

XRP price shows a massive influx of active wallets, should Investors be concerned?

XRP price shows a massive influx of active wallets, should Investors be concerned?

Ripple’s active addresses have increased by nearly 6x on multiple sets of occasions throughout the summer. Ripple price hovers just above a breached consolidative barrier, which is enticing traders to open a long positions.

More Ripple news

Top 3 Price Prediction: Whales at the shore play tag

Top 3 Price Prediction: Whales at the shore play tag

Bitcoin price continues to validate previous technical analysis outlooks issued throughout the month of July. BTC price trades at $24,182 as the intraday traders take advantage of the profit-taking consolidation near the $24,600 level.

More Bitcoin news

Will the Ethereum price finally flip Bitcoin?

Will the Ethereum price finally flip Bitcoin?

Ethereum price continues to outperform Bitcoin. Higher targets remain possible but investors should be aware of a potential liquidation. Ethereum price currently auctions at $1,896 as day traders have begun taking profit above the psychological $1,900 level.

More Ethereum news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP