Cardano Value has to defend this level for a 12% rebound as community exercise will increase
- Cardano price is contained in a descending triangle pattern on the 4 hour chart.
- The digital asset has seen a massive surge in network activity over the past week.
- According to several indicators, there is only one key resistance ahead for ADA bulls.
Cardano has been trading in a downtrend on the 4 hour chart for several days and the price is currently at an important level of support for the bulls. Despite the weak price development, Cardano has seen a massive increase in the number of new addresses on the network.
Cardano price could see a massive breakout as the metrics strengthen in the chain
On the 4-hour chart, Cardano price has formed a descending triangle pattern with a critical support level of $ 1.16. The digital asset has to defend this point at all costs and it seems that the odds are favoring the bulls according to various indicators.
ADA network activity
The number of new addresses that joined the Cardano network in the past week has increased by 43% despite the significant drop in the price of the digital asset. Similarly, the number of active addresses also increased by 30% over the same period, giving ADA buyers the upper hand.
There is an IOMAP chart
The IOMAP (In / Out of the Money Around Price) chart shows a critical 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.
ADA / USD 4 hour chart
A break above the upper bound would give the bulls an 8% rally towards $ 1.31. This movement is calculated using the height between the lower trend line and the upper limit of the pattern as a reference.
On the flip side, failure to hold the key support level at $ 1.163 would quickly propel Cardano price towards $ 1.06.