- Over $20M ADA exited exchanges, cutting supply and boosting bullish sentiment.
- Cardano trading volume topped $902M despite a 1.3% price dip.
- Cardano’s TVL hit $442M as DEX volumes surged to $3.87M.
Cardano price looks set for a substantial increase since more than $20 million worth of ADA tokens exited exchanges during the previous week. The notable token outflows from exchanges match up with a strong technical breakout and growing blockchain activity boosts the potential for higher returns. Market analysts predict that Cardano may reach the $1.46 level as its current trends continue.
ADA Withdrawals Strengthen Bullish Outlook
According to recent Coinglass data more than $20 million ADA tokens were transferred from major exchanges such as Binance and OKX over the last seven days. The immediate saleable supply has decreased which creates conditions for a potential supply squeeze.
Market experts point out that large movements of cryptocurrency from exchanges usually signal strong investor belief and intentions for long-term asset retention. Stable demand combined with less ADA available in open markets may push prices higher.
Cardano’s current trading price is $0.71 even though it has experienced a 1.3% decrease during this time frame. Trading volumes have continued to show strength as they exceed $902 million demonstrating increased investor interest. The combination of growing buying momentum and diminishing supply may soon trigger a substantial rally for Cardano.
Technical Breakout Adds Momentum to Cardano Price Action
Technical indicators are aligning with bullish sentiment surrounding Cardano’s price prospects. Recently, ADA broke out of a descending wedge pattern on the daily timeframe, a formation typically associated with upward reversals.
Trader Justin Qu noted that if ADA holds support at the wedge’s upper trendline, the next resistance stands at $1.24. Surpassing this level could pave the way for further gains towards $1.46. The breakout, combined with surging withdrawals, suggests strong accumulation and mounting pressure for an upside movement.
Additionally, a report emphasized that Cardano could advance even further if bullish momentum persists, with some forecasts projecting targets beyond $2 during the next phase of growth.
Cardano Network Activity Strengthens Investor Sentiment
Cardano’s strengthening fundamentals offer additional support for bullish price action. DeFiLlama reported that Cardano’s Total Value Locked reached $442 million which represents its peak value in the last four weeks.
Decentralized exchange (DEX) volumes displayed substantial growth. The latest information shows DEX volumes on Cardano reached $3.87 million which represents a substantial increase from the previous day.
The growth of TVL along with heightened DEX operations usually signals expanding adoption and increased investor interest within blockchain frameworks. Hence, Cardano’s expanding ecosystem suggests that the altcoin could maintain upward momentum.
Should demand continue to escalate amid falling exchange supply, the probability of Cardano reaching the $1.46 target remains strong.
