Cardano price is on the cusp of a break-out as the symmetrical triangle nears its confluence zone. The ADA price is trading at $1.1184, which is 25% below its highest level this year. Its market cap has dropped by 11% to $35.62 billion in the past seven days.
The background: Cardano is a blockchain network that aims to become a major player in the decentralised industry. It is a well-known Ethereum rival that developers believe will become a major player in most sectors like healthcare, finance, and education. ADA is the native token that powers the Cardano network.
In the past few months, the developers have been carrying out a major Mary upgrade that is part of the Goguen era. In it, the network will incorporate smart contracts and enable the development of decentralised apps. The Goguen era will be followed by Basho and Voltaire eras.
The four-hour chart shows that the Cardano price has formed a symmetrical triangle pattern that is shown in purple. In technical analysis, this pattern is usually followed by a bullish or bearish breakout when it reaches its confluence zone. However, a close look also shows that the ADA price is forming a head and shoulders pattern.
Therefore, the price may break-out lower in the near term. If this happens, the next key level to watch is $0.9920, which is 12% below the current level. This price is along the lowest level on February 12th.
