Cardano ADA Consolidates Near $0.88 Amid Bullish Flag Setup for Potential $1.20 Breakout

Cardano’s ADA is consolidating near $0.88 within a bullish flag pattern, setting the stage for a potential breakout toward $1.20, according to recent technical analysis and on-chain metrics [1]. The price movement reflects renewed buyer interest following a Sunday fakeout and a pullback that has since defined a clear consolidation range between $0.80 and $0.95 on the 4-hour chart. A confirmed breakout above the upper trendline of this pattern—currently near $0.95–$1.00—could propel ADA toward the $1.20 target, particularly if accompanied by rising volume and a RSI reading above 50 [1].

The DeFi sector on the Cardano blockchain remains active, with total value locked (TVL) standing at approximately $389.46 million as of August 25, 2025. Despite a 5.06% decline in TVL over the past 24 hours, the level still indicates consistent liquidity and user participation across decentralized exchanges (DEXes), lending platforms, and stablecoin mechanisms [1]. Daily DEX volume reached $3.75 million, while perpetual contracts added $5.51 million in trading activity. NFT trading volume also registered at $19,170, further supporting on-chain engagement [1].

On-chain data also shows that ADA’s active address count stands at 24,615, highlighting steady network usage. Meanwhile, application fees and revenue over the last 24 hours totaled $24,615 and $5,271, respectively [1]. The stablecoin market on Cardano has a combined market cap of approximately $38.35 million, offering continued support for liquidity generation and cross-platform activity [1].

From a technical perspective, the RSI indicator currently sits near 50, signaling neutral momentum that may precede a directional resolution. Traders are advised to monitor three key price scenarios: a successful breakout above $0.95–$1.00 with rising volume; a breakdown below $0.80 support, potentially leading to a pullback toward $0.70–$0.75; or an extended sideways consolidation phase that preserves future breakout potential [1]. According to Elliotwave Forecast (August 5, 2025), ADA’s rally remains valid as long as recent lows from August 22 and August 2 hold, with historical cycles showing similar consolidation patterns before sharp upward extensions [1].

ADA’s current market capitalization is approximately $31.737 billion, with a fully diluted valuation near $39.155 billion. These figures place Cardano in a mid-tier position among major crypto assets but underscore the potential for growth if the technical pattern plays out as projected [1].

The bullish flag is a continuation pattern that suggests Cardano could resume its prior uptrend once consolidation ends. Traders generally look for three key signals to confirm a valid breakout: rising volume at the breakout level, a retest of broken resistance turning into support, and alignment between RSI and price action to validate the move [1]. While the technical setup is encouraging, it is important to note that the $1.20 target is a forecast based on analysts’ interpretations of the chart and does not reflect confirmed price movement [1].

Source: [1] Cardano Could Target $1.20 After Consolidating Near $0.88 as DeFi TVL Stands Around $389M (https://en.coinotag.com/cardano-could-target-1-20-after-consolidating-near-0-88-as-defi-tvl-stands-around-389m/)