We analyzed the effects of velocity-monitored resistance training (RT) with a velocity loss of 20% on strength and functional capacity in institutionalized older adults. Thirty-nine participants (78.8 ± 6.7 years) were divided into a control group (CG; n = 20) or an RT group (n = 19). Over 10 weeks, the RT group performed two sessions per week, and the mean velocity of each repetition was monitored in the leg-press and chest-press exercises at 40–65% of one-repetition maximum (1RM). The set ended when the participants reached a velocity loss of 20%. The CG maintained their daily routine. At pre- and post-test, both groups were assessed in the 1RM leg-press, 1RM chest-press, handgrip strength, medicine ball throw (MBT), walking speed, and sit-to-stand (STS). At baseline, we did not find significant differences between groups. After 10 weeks, we observed significant differences (p < 0.001–0.01) between groups in the 1RM leg-press, 1RM chest-press, MBT-1 kg, and STS. The RT group performed a total number of repetitions of 437.6 ± 66.1 in the leg-press and 296.4 ± 78.9 in the chest-press. Our results demonstrate that velocity loss effectively prescribes the volume in older adults and that a threshold of 20% improves strength-related variables in this population.