Cardano (ADA) is showing strong bullish signals again, with its price rebounding as nearly $1 billion worth of ADA leaves centralized exchanges. This large-scale outflow mimics patterns seen during the 2021 bull run, raising hopes that Cardano could be on track to reclaim the $3.10 high.
ADA Rebounds as Crypto Market Turns Bullish
On May 20, Cardano climbed to $0.74, marking a 3% intraday gain. As Bitcoin and other altcoins trend upward, ADA is gaining fresh momentum. Market sentiment also improved after Charles Hoskinson, Cardano’s founder, engaged a third-party audit firm to address recent fraud allegations.
Despite the controversy, the confidence among ADA holders is rising—as shown by the surge in long positions on Binance and consistent outflows from exchanges.
Exchange Outflows Signal Long-Term Optimism
According to CoinGlass, nearly $932 million worth of ADA has been withdrawn from centralized exchanges in 2025 alone. The last time outflows reached this level was in 2021, right before ADA hit its all-time high of $3.10.
Such outflows typically signal investor confidence, suggesting holders are moving tokens to cold storage in anticipation of price growth.
Key Resistance Levels: $1, Then $3.10?
ADA is currently testing critical support at $0.74. If this level holds, the next major targets are:
- $0.84 resistance
- $1 psychological barrier
- $1.32 breakout zone
- And finally, the long-term goal: $3.10
However, technical indicators remain mixed. The RSI is neutral at 51, and the Directional Movement Index (DMI) suggests fading bullish momentum. A drop to the $0.68–$0.74 support zone could invite fresh buyers and potentially fuel the next leg up.
Audit Report Could Reignite Investor Trust
The recent fraud allegations against Hoskinson triggered doubt in the market. But the upcoming audit report—conducted by a law and accounting firm—may help turn the tide.
Hoskinson has pledged to step back from public appearances after the audit, aiming to restore faith in Cardano’s leadership. A clean audit result could boost ADA sentiment significantly and spark renewed interest from investors.
Traders on Binance Go Long on ADA
Data from Coinglass shows that 74% of Binance traders are betting long on ADA. Additionally, open interest stands at $859 million, indicating high trader engagement and belief in a potential rally.
If bulls gain control, ADA could soon revisit the $0.84 resistance before aiming for the $3.10 milestone.
