Cardano Price Eyes $0.555 as Symmetrical Triangle Pattern Takes Shape

Cardano price action forms a symmetrical triangle pattern, signaling potential price movement amid mixed network activity.

Over the past four months, Cardano has faced a significant price drop, falling by more than 30%. This has drawn attention from market observers, especially as the broader crypto market waits for upcoming decisions from the Federal Reserve.

Amid this decline, recent analysis suggests potential scenarios for Cardano’s price movements, considering the possible effects of Federal Reserve rate cuts.

Symmetrical Triangle Signals Shift in Cardano Price

Dan Gambardello, founder of Crypto Capital Venture, has analyzed Cardano’s chart, identifying a symmetrical triangle pattern that indicates consolidation. 

Cardano chart.

Rate cuts tomorrow.

Markets may be choppy.

At least a good idea to anticipate & visualize a fall down for crypto.

I think a move down would end up being a fake breakout, for a busted pattern setup. pic.twitter.com/9ExsJopMe8

— Dan Gambardello (@cryptorecruitr) September 17, 2024

The chart highlights two possible outcomes: a bearish breakdown or a bullish breakout. While a breakdown might send Cardano’s price toward $0.275, the chart notes that this could be a “fake breakout” and that the move could reverse to the upside. The potential bullish breakout may push the price toward $0.555, driven by broader market conditions.

Drop in Address Activity 

Furthermore, data on Cardano’s address activity presents mixed signals about the network’s future. While new addresses have increased by 2.99% in the past seven days, active addresses have dropped by 3.06%, indicating lower transaction volume and participation. 

At the same time, zero-balance addresses have risen by 3.57%, which suggests that more users may be withdrawing their holdings, possibly due to market uncertainty.

Despite the decline in active users, the increase in new addresses points to continued interest in the network, although it has not yet translated into higher activity. Notably, this combination of falling activity and rising withdrawals is consistent with the overall market downturn.

Cardano Network Development

Amid the price fluctuations, Cardano’s development efforts remain a focal point for the community. In a recent poll conducted by Rick McCracken, a figure in the Cardano community, members voted on two network improvement proposals. 

The majority favored the Leios protocol, receiving 56% of the vote, while only 7% supported the alternative Rust-based node proposal. These improvements aim to enhance the network’s speed, positioning Cardano to better compete with rivals like Solana.