TLDR
- Cardano is attempting to break the $1 psychological resistance level again
- Institutional inflows into ADA reached approximately $73M this year, with $900M held in custody
- Despite recent price drops, the daily chart shows a bullish structure with higher lows
- Mean coin age has begun trending higher, suggesting accumulation phase
- Network processed over 112 million transactions while maintaining fees below $0.25
Cardano (ADA) is holding steady at $0.86 as it prepares for another attempt to break through the important $1 resistance level. This stability comes despite Bitcoin’s recent pullback, which saw BTC drop 4.6% from $117,000 to $111,500 over a three-day period.
During this same timeframe, Cardano shed 6.67% of its value, falling from $0.93 to $0.86. However, the price action on the daily chart maintains a bullish structure, with trading volume remaining relatively high throughout August.
On August 14, ADA tested the $1 mark as resistance but failed to climb higher. Technical analysis suggests another attempt is likely soon. If successful, the next target would be the $1.20 level based on Fibonacci extension levels.
The on-chain metrics present a mixed picture. While development activity – a metric Cardano typically dominates – has been declining throughout 2025, it still maintains a respectable figure of 80.86. For context, Ethereum’s development activity score was 25.05 at press time.
A potential concern for investors is the steady decline in transaction volume. The network has experienced two significant step-downs in activity over the past year – first in November 2024 and again in April 2025. Current on-chain volume is down 90% compared to early November levels.
Institutional Interest Grows
ReserveOne data reveals increasing institutional demand for ADA throughout 2025. Inflows have reached approximately $73 million this year, bringing total institutional holdings in custody to more than $900 million.
Analysts suggest large investors are allocating capital to Cardano based on structural value rather than short-term speculation. Institutions typically expand exposure to assets that demonstrate liquidity, reliable infrastructure, and a maturing ecosystem.
Cardano meets these requirements with its steady transaction processing and ecosystem development, supporting the case for accumulation. This trend indicates that ADA is evolving into a longer-term portfolio asset for funds and advisory groups.
Technical Outlook Remains Positive
Technical analysis highlights Cardano’s stair-step structure, with a series of higher lows across daily and weekly charts. This pattern suggests the market is transitioning from consolidation into expansion.
Analysts identify a demand zone near $0.84 created by strong volume activity. Maintaining this level signals continued strength and provides a base for potential advances toward the $1.20 to $1.30 resistance cluster.
The risk remains clear: a drop below $0.84 could send the token back to the previous accumulation band around $0.70 to $0.72. However, a confirmed breakout above $1 would likely improve sentiment and reinforce institutional flows.
Market data also shows rising futures open interest for ADA, with levels approaching those last seen during the previous peak cycle. Open interest measures the total value of outstanding futures contracts, and analysts often view increasing open interest as a sign of growing market participation.
Rising values can precede stronger volatility, creating conditions for directional price moves.
The 180-day MVRV (Market Value to Realized Value) ratio reflects that a large number of holders may be in profit, which could present a threat of profit-taking. However, this threat has not yet materialized, as dormant circulation has remained relatively low in August.
An encouraging factor is the slow uptick in mean coin age (MCA). The MCA tracks the average age of all tokens on the network. A falling trend implies coins are being distributed, which Cardano has witnessed since May. Over the past two weeks, the mean coin age has slowly begun to trend higher – a sign of accumulation.
Cardano $ADA buyers can enter the market at $0.84 with a target of $1.30, as long as support holds. If it breaks below, exit immediately. pic.twitter.com/QA2PNEjF2E
— Altcoinpedia (@altcoinpediax) August 20, 2025
On-chain growth continues to support the longer-term outlook. Cardano’s network has processed more than 112 million transactions this year, according to blockchain data. Average transaction fees remained below $0.25 at press time.
Compared to other blockchains where fees often spike during periods of congestion, Cardano has maintained affordable costs. This efficiency positions the network for applications beyond speculation.
Analysts note that sustained low fees are important for adoption in payments, decentralized finance, and enterprise use cases. Broader adoption requires consistent affordability at scale, which Cardano demonstrates through its transaction metrics.
At press time, the critical area remains between $0.84 and $1.00. Holding this structure keeps the technical outlook constructive. A sustained breakout above $1.20 could shift momentum toward the next resistance levels near $1.50 and beyond.
If the trend of higher lows continues, the next expansion phase could target the $3.00 region identified in macro projections.
