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