Regulatory Delays and Volatility Test Cardano’s Price Resilience

Cardano’s ADA token is under pressure, with analysts warning that the price could fall below $0.70 in August. The token currently trades at approximately $0.87, having experienced a volatile 10% swing between $0.862 and $0.963 in a 24-hour period. This price volatility was observed following a Friday AMA session with Charles Hoskinson, co-founder of Cardano, who emphasized optimism about the platform’s future, particularly with the anticipated launch of the Midnight Network aimed at enhancing blockchain data privacy [1]. The token has stabilized around a key support level of $0.856, where increased buying volume suggests some defensive interest from traders.

Despite this, broader market conditions remain cautious. The SEC has delayed the decision on the proposed Grayscale Cardano ETF until October 26, 2025, a development that has dampened near-term sentiment. Market analysts note that this delay keeps investors in a holding pattern, as the eventual approval of such an ETF could still significantly influence institutional demand for ADA [2]. Technical analysis of ADA’s price action suggests a converging triangle pattern is forming around the $0.82 to $0.84 support zone. A breakdown from this range could push ADA toward $0.77, while a rebound could see a test of the $0.86 resistance level [2].

On-chain activity for Cardano has hit three-year lows, with reduced trading volume, wallet interactions, and fee generation all contributing to a subdued ecosystem. This quiet phase has historically preceded major rebounds, though the current environment is testing the patience of long-term holders. Meanwhile, ADA remains within a descending channel, with lower highs capping upside attempts and weak volume reinforcing bearish tendencies. Traders are closely watching for a clear breakout above the channel’s upper trendline, which could signal a shift in momentum [2].

The broader crypto market appears to be in a consolidation phase, as institutional and retail investors alike remain attentive to regulatory and macroeconomic developments. Hoskinson highlighted the potential impact of the Federal Reserve’s expected September rate cut and the potential passage of the Digital Asset Market Clarity Act as key catalysts for the next phase of crypto price action. While ADA has gained 125% year-to-date, it remains far below its all-time high of $2.90, reached in August 2021 [1]. The token’s ability to hold above the Ichimoku Cloud on the weekly chart suggests some underlying bullish momentum, though buyers have yet to fully regain control of the price structure [2].

Analysts remain divided on the near-term outlook for Cardano. While some believe ADA could stabilize and attempt a rebound, others warn that a breakdown below $0.82 may trigger a sharper decline toward $0.77. The outcome will likely depend on the broader market sentiment and how key regulatory developments unfold in the coming months [2].

Source:

[1] Cardano's ADA Price Finds Support as Hoskinson Talks ... (https://www.coindesk.com/markets/2025/08/25/cardano-s-ada-price-finds-support-as-hoskinson-talks-network-s-future)

[2] Cardano Price Prediction: Can ADA Avoid Breakdown ... (https://bravenewcoin.com/insights/cardano-price-prediction-can-ada-avoid-breakdown-below-0-82-and-target-0-90-next)

[3] Cardano's ADA Price Finds Support as Hoskinson Talks ... (https://finance.yahoo.com/news/cardano-ada-price-finds-support-153331622.html)