Cardano ADA Near $1 As On-Chain Metrics Signal Profit-Taking Risks

Cardano’s ADA price is approaching the $1 psychological level after a bullish run in late August 2025, supported by rising mean coin age and steady daily active addresses. However, conflicting on-chain metrics suggest caution, as transaction volume has fallen by nearly 90% compared to November 2024, and development activity has been trending downward despite remaining higher than many peers[1].

The price has shown signs of accumulation, with a slow uptick in mean coin age and elevated 180-day MVRV ratios, indicating potential profit-taking by holders[1]. Over the past three days, Bitcoin fell approximately 4.6%, weighing on ADA’s momentum and causing a 6.67% dip in its value. Despite this, the daily chart still shows higher lows and a generally bullish bias[1].

Analysts suggest that traders should monitor price action around the $1 level, along with volume and MVRV readings, to identify signs of distribution. Long-term investors, on the other hand, should focus on development activity and daily active addresses as indicators of protocol health and adoption[1]. While ADA may attempt another breakout, the combination of low transaction volume and high MVRV increases the risk of a short-term pullback. A confirmed breakout would require rising volume and sustained buying pressure[1].

On-chain indicators remain mixed. Development activity, while still higher than Ethereum’s (~25.05), has declined throughout 2025, signaling potentially slower feature deployment and reduced narrative momentum[1]. Meanwhile, the drop in transaction volume limits the network’s ability to sustain a rally, highlighting the need for renewed activity before a breakout can be considered sustainable[1].

Traders and investors are advised to assess these metrics in conjunction with broader market conditions, such as Bitcoin’s performance. ADA’s on-chain health can be monitored through metrics like transaction volume, mean coin age, daily active addresses, and MVRV. Cross-referencing these with price movements and global market trends is essential for a balanced view[1].

Cardano now faces a critical juncture at the $1 level. Investors should look for price confirmation and volume expansion to validate a breakout. Continued monitoring of on-chain metrics, including development updates and network usage, will be key to assessing the long-term outlook for ADA[1].

Source: [1] Cardano Could Challenge $1 Again Amid Bullish Price Action but On-Chain Metrics Raise Profit-Taking Risks (https://en.coinotag.com/cardano-could-challenge-1-again-amid-bullish-price-action-but-on-chain-metrics-raise-profit-taking-risks/)