Large-scale stakeholders trimming ADA holdings coincides with a downturn in Cardano's network activity.
In the world of cryptocurrencies, Cardano (ADA) is currently navigating a cautiously bullish short-term market trend. This optimistic outlook is supported by rising trading volumes and a break from a falling wedge pattern, with ADA trading near $0.80 and eyeing resistance around $0.84–$0.85 and potentially $0.90 to $1.00 by the end of August 2025[1][3][4].
The month of August 2025 has seen a strong start for ADA, rising nearly 19% from about $0.68 to over $0.81 within the first week[1]. Key support levels are $0.77 and $0.68, while resistance to watch includes $0.84 and $0.90, with further potential upside to $1.00 and beyond if momentum continues[1][3].
However, this bullish sentiment is countered by some recent downward pressure. ADA was previously in a falling channel before the recent breakout attempts[2]. Technical indicators like the Relative Strength Index (RSI) around 63.8 and a declining 50-period EMA approaching the 200-period EMA increase the chances of a death cross, suggesting some risk remains from macro conditions and altcoin rotations[3][5].
Network transaction volume dropped from $1.69 billion to $744 million following profit-taking on July 25, indicating temporarily reduced network activity[2]. Large whales (holding between 1 and 100 million ADA) sold approximately 390 million ADA tokens since late July, contributing to price softness amid this sell-off phase[2].
Despite earlier selling, recent whale accumulation resumed around the time of treasury approval, signaling renewed strategic positioning that often precedes upward price moves[4]. The $71 million (96 million ADA tokens) treasury allocation was approved by 74% community support through Cardano’s first major on-chain governance vote, marking a significant milestone in decentralized governance[2][4].
Funds will be disbursed over 12 months to support critical blockchain development efforts including scaling solutions like Hydra, node redesign (Project Acropolis), developer tooling, and interoperability improvements with Bitcoin and Ethereum[2]. This initiative reflects strong community engagement and governance maturity and is expected to accelerate Cardano’s infrastructure upgrades and long-term growth potential[2][4]. Following the treasury approval, ADA’s price surged about 7.76% in a day, reaching roughly $0.79, with analysts indicating this could be a catalyst for breaking resistance levels and targeting $1.00 and beyond[4].
Daily active addresses have recovered to nearly 31,000, showing steady retail participation[6]. Despite a sharp drop in network activity following a profit-taking surge on July 25, daily active addresses have surpassed the 28,248 addresses that were active during the profit-taking period, suggesting retail participation remains steady despite reduced transaction volumes.
In summary, Cardano’s short-term market trend is bullish, underpinned by increased trading volume and strategic whale accumulation, tempered by recent network volume drops and some whale selling. The $71 million treasury allocation represents a transformative funding milestone aimed at major network enhancements over the next year, which could significantly boost Cardano’s network capabilities and investor confidence, supporting a positive ecosystem development outlook and potential price appreciation[1][2][4].
[1] CoinMarketCap. (2025). Cardano Price Live Data. [Online]. Available: https://coinmarketcap.com/currencies/cardano/
[2] Cardano Foundation. (2025). Cardano Treasury Proposal 1 Passes On-Chain Governance Vote. [Online]. Available: https://cardanofoundation.org/cardano-treasury-proposal-1-passes-on-chain-governance-vote/
[3] Santiment. (2025). Cardano (ADA) Technical Analysis: Bullish Breakout or Bear Trap? [Online]. Available: https://santiment.net/blog/cardano-ada-technical-analysis-bullish-breakout-or-bear-trap
[4] Cointelegraph. (2025). Cardano price surges 7.76% after $71 million treasury proposal passes on-chain vote. [Online]. Available: https://cointelegraph.com/news/cardano-price-surges-7-76-after-71-million-treasury-proposal-passes-on-chain-vote
[5] TradingView. (2025). ADAUSD 4-hour chart. [Online]. Available: https://www.tradingview.com/chart/ADAUSD/cXZaqJh6/
[6] CoinMetrics. (2025). Cardano (ADA) Daily Active Addresses. [Online]. Available: https://coinmetrics.io/charts/cardano-ada-daily-active-addresses/
- The bullish trend for Cardano (ADA) has been evident in the cryptocurrency market, with analysts predicting potential upside to $1.00 and beyond by the end of August 2025, attributing this to increased trading volumes and strategic whale accumulation.
- While the Relative Strength Index (RSI) and a declining 50-period EMA approaching the 200-period EMA suggest some risk remains due to macro conditions and altcoin rotations, the recent whale accumulation resumed around the time of treasury approval, pointing towards potential upward price moves.
- The approved $71 million treasury allocation, aimed at major network enhancements like Hydra, Project Acropolis, developer tooling, and interoperability improvements with Bitcoin and Ethereum, is expected to accelerate Cardano’s infrastructure upgrades, boost network capabilities, and increase investor confidence in the long term.
