Cardano Could Target $1.20 After Consolidating Near $0.88 as DeFi TVL Stands Around $389M

• Cardano forms a bullish flag with a $1.20 breakout target.

• ADA DeFi TVL is $389.46M, down roughly 5% in 24 hours.

• Trading volume, RSI near 50, and active addresses show steady engagement during consolidation.

Cardano price outlook: Cardano price consolidates at $0.88 with a $1.20 breakout target; read analysis and on-chain metrics for actionable insight.

What is the Cardano price outlook after the Sunday fakeout?

Cardano price is trading near $0.8831 after a Sunday fakeout and appears to be forming a bullish flag that targets about $1.20 on a confirmed breakout. On-chain metrics and DeFi activity support continued interest while volatility remains moderate.

How is the technical setup shaping ADA’s breakout chances?

On the 4-hour chart ADA has consolidated between $0.80 and $0.95, creating a clear bullish flag pattern. Recent price action moved above a short-term trendline near $0.921, indicating renewed buyer activity.

Volume increased on key upswings, while the 50-period moving average flattens, showing short-term support. RSI sits near 50, reflecting neutral momentum that precedes directional resolution.

Analysts referenced in market commentary (Elliotwave Forecast, August 5, 2025) maintain that ADA’s rally remains valid while recent lows from August 22 and August 2 hold. Historical cycle comparisons show similar consolidation phases preceding sharp trend extensions once resistance is cleared.

Price scenarios to watch:

1. Confirmed breakout above $0.95–$1.00 with rising volume: target $1.20.
2. Failure to hold $0.80 support: risk of deeper pullback toward $0.70–$0.75.
3. Sideways continuation: extended consolidation with decreasing volatility, preserving breakout potential.

How strong is Cardano’s DeFi activity and network usage?

Cardano DeFi TVL stands at approximately $389.46 million, down about 5.06% in the last 24 hours. Stablecoins on Cardano hold a market cap near $38.35 million, providing liquidity for DEX and lending activity.

Daily DEX volume reached $3.75M and perpetuals added $5.51M; application fees were $24,615 and application revenue $5,271 in the last 24 hours. Active addresses measured 24,615, indicating consistent user engagement. NFT trading volume stood at $19,170 for the day.

Market capitalization metrics: ADA market cap is about $31.737 billion, with a fully diluted valuation near $39.155 billion.

Why does the bullish flag matter for traders?

A bullish flag is a continuation pattern that suggests a prior uptrend may resume after brief consolidation. For Cardano price, the flag indicates that momentum could reassert if volume rises and price breaks above the flag’s upper trendline.

Traders typically look for: (1) volume confirmation on breakout, (2) retest of broken resistance as support, and (3) RSI and momentum alignment to validate the move.

Frequently Asked Questions

How much is Cardano’s DeFi TVL right now?

Cardano DeFi TVL is approximately $389.46 million, reflecting a 24-hour decline near 5%. Historical peaks exceeded $700 million in early 2025 before retracement.

What should traders watch for to confirm an ADA breakout?

Traders should watch for a decisive close above the flag’s upper trendline with rising volume, RSI moving above neutral, and support holding near $0.80 on any retest.

Key Takeaways

• Bullish flag confirmed: ADA has formed a bullish flag; $1.20 is the next logical target on breakout.
• On-chain liquidity: DeFi TVL at ~$389M and stablecoin supply support DEX and lending activity.
• Watch volume and RSI: Volume confirmation and momentum alignment are needed to validate a sustained breakout.

Conclusion

Cardano price is consolidating near $0.88 in a pattern that suggests further upside if momentum returns. On-chain DeFi TVL and activity provide supportive context, but traders should require volume and momentum confirmation before assuming a sustained move to $1.20. Follow COINOTAG coverage for updates and data-driven analysis.