Cardano (ADA) has shown resilience this week, trading around $0.85 on Friday after finding support near its previously broken trendline. The cryptocurrency tested the $0.82 support level on August 22, which closely aligns with the 61.8% Fibonacci retracement level, before rallying over 9%. However, the upward momentum couldn’t be sustained, and ADA has declined about 7% this week.

The price is now steadying around the critical $0.82-$0.85 support zone, which appears to be holding for now. This area is being watched closely by traders as it could determine ADA’s next major move.

Recent developments on the Cardano network suggest growing ecosystem strength. On Thursday, Everstake became an official Cardano Delegated Representative (DRep). This milestone gives Everstake a direct voice in Cardano’s governance, allowing them to vote on critical proposals, protocol upgrades, and community initiatives on behalf of ADA holders.

“We’re excited to play an active role in Cardano’s on-chain governance and help shape the future of one of the most decentralized ecosystems in crypto,” stated Everstake in a post on X.

1/5 Big news: Everstake is now an official Cardano DRep (Delegated Representative)!

We’re excited to play an active role in Cardano’s on-chain governance and help shape the future of one of the most decentralized ecosystems in crypto. pic.twitter.com/4Q3Q0aTHT1

— Everstake (@everstake_pool) July 30, 2025

This development highlights Cardano’s expanding network and evolving governance structure, which could positively impact investor sentiment in the long run.

Derivatives Data Points to Recovery

Market data from derivatives platforms shows encouraging signs for ADA’s price recovery. According to Coinglass, the OI-Weighted Funding Rate has turned positive, rising to 0.0070% on Friday. This indicates that traders going long on ADA are now paying those with short positions, suggesting a shift in market sentiment toward bullish expectations.

Historically, when funding rates flip from negative to positive, Cardano’s price has often seen sharp rallies. This pattern adds weight to the recovery thesis.

Beyond funding rates, Cardano’s long-to-short ratio data reveals an increase in bullish bets among traders. This growing confidence could provide the momentum needed for ADA to break above key resistance levels in the coming days or weeks.

The Relative Strength Index (RSI) on the daily chart hovers around its neutral level of 50, indicating some indecision among traders. For a sustained recovery rally, the RSI would need to move decisively above this neutral zone.

Technical Outlook and Price Targets

Cardano sits at a pivotal technical juncture as August comes to a close. The cryptocurrency is trading at a critical decision point, with the $0.82 level serving as key support.

If this support continues to hold and buying pressure increases, ADA could extend its rally toward the August 14 high of $1.02. Multiple analysts have convergent price targets in the $0.94-$1.04 range for the short term.

Cardano Price on CoinGecko

Technical analysis reveals ADA is currently positioned within the lower third of its Bollinger Bands trading range, with the upper band at $0.98 representing immediate upside potential. The current price sits precisely at the 20-period Simple Moving Average, creating a critical decision point for the next directional move.

For the bullish scenario to play out, ADA needs to break above the $0.95 resistance level decisively. This would invalidate the descending channel pattern identified by some analysts and potentially trigger momentum toward higher targets.

However, if ADA closes below the $0.82 support level on a daily basis, it could extend the correction toward its next support level at $0.76, which is the 50% price retracement. A break below $0.80 would likely trigger stops and accelerate selling toward lower support levels.

Trading volume remains healthy, with $119.2 million in 24-hour Binance spot trading, indicating sufficient liquidity for any potential breakout. The daily Average True Range of $0.06 suggests moderate volatility, providing room for significant price movements in either direction.

Recent whale accumulation data shows over 130 million ADA tokens being accumulated by large holders. This institutional interest, combined with the growing network developments, supports the medium-term bullish case for Cardano.

The price of Cardano (ADA) stands at $0.85 as of Friday, August 29, 2025, with technical indicators suggesting a potential move toward the $0.94-$1.04 range if current support levels continue to hold.