Cardano Tests $0.175 as On-Chain Activity Continues to Weaken—Can ADA Price Reclaim $0.20

Cardano price has remained stuck within a prolonged descending trend and is back at a crucial juncture. After losing the $0.2 resistance, the price is currently hovering around $0.175, with the $0.165 to $0.18 emerging as an important area for the next move. On the other hand, the network activity has weakened in recent months, creating a divergence between the ADA’s price recovery and activity. Now the question arises whether the bulls can manage to hold support and reclaim $0.20.

Network Activity Remains a Concern

Cardano’s network activity has weakened alongside the decline in TVL. The recent DeFiLlama chart shows TVL falling from roughly $130–$140 million earlier in the period to around $60–$65 million in August. This indicates that capital locked in the ecosystem has yet to recover meaningfully. While the active addresses and transactions have also dropped significantly, signifying a slowdown in network participation. 

The active address count has dropped from 28,459 to 13,800, while the transactions have fallen to 17,400 from 26,000. The numbers, therefore, suggest that ADA’s price recovery has not matched a comparable recovery in Cardano’s underlying network activity. That divergence becomes particularly important as ADA approaches the technical levels highlighted on the price chart.

ADA’s Price Action Points to a Crucial Test

ADA has pulled back to around $0.175 after failing to break $0.20. The broader recovery from the $0.14 area remains intact, but buyers now need to defend the $0.165 support to keep the structure positive. The Ichimoku Cloud puts immediate resistance at $0.181–$0.182, with the Tenkan-sen at $0.181 and Kijun-sen at $0.182. A move above this zone could bring $0.20 back into focus.

The Volume Profile shows strong trading activity around $0.16–$0.18, making the current area important for both buyers and sellers. A larger volume concentration sits around $0.24–$0.26, which could become the next major resistance if ADA breaks above $0.20. Volume has remained relatively subdued during the latest recovery, so a breakout would be more convincing if accompanied by stronger buying activity. For now, $0.165 is the key support, $0.181–$0.182 is the first hurdle, and $0.20 remains the major breakout level.

Wrapping it Up: Can Bulls Reclaim $0.20?

ADA’s next move is likely to depend on whether buyers can defend $0.165 and reclaim the $0.181–$0.182 Ichimoku resistance. On the bullish side, a break above $0.182 could open the way toward $0.20. A clean breakout above $0.20 would strengthen the recovery and bring $0.22–$0.23 into view, followed by the $0.24–$0.26 Volume Profile resistance zone.

The bearish case begins with a break below $0.165. That could weaken the current recovery structure and send ADA toward $0.15, while a deeper sell-off could bring the $0.137–$0.14 support zone back into play.

Bullish targets: $0.20 → $0.22–$0.23 → $0.24–$0.26
Bearish targets: $0.165 → $0.15 → $0.137–$0.14