Cardano (ADA) bulls remain confident, and recent on-chain data suggests that the altcoin may be primed for another rally. In the past two days, Cardano investors have withdrawn a staggering $100 million from exchanges, an indicator that often points to reduced selling pressure and an upcoming upward price movement.

As ADA’s price stands at $0.98 after peaking at $1.15 earlier, investors are keeping a close eye on the market’s behavior. The broader market recently saw a pullback, with Bitcoin dropping below $95,000, but Cardano’s relative resilience suggests that its bulls are not backing down. With a combination of key technical patterns and bullish on-chain data, the stage could be set for a fresh surge in ADA’s price.

Cardano Investors Stick to Their Bullish Conviction

While some might view Cardano’s recent drop as a sign of weakness, the data tells a different story. As of the latest market data, ADA’s price has retraced to $0.98, following a rise to $1.15. This minor decrease is likely tied to the broader market dip, with Bitcoin’s price sliding by over 3% in recent hours. However, the most intriguing development for ADA investors comes from the withdrawal of large amounts of ADA from exchanges.

According to Coinglass, ADA’s Spot Inflow/Outflow data reveals a significant change. In the past two days, Cardano investors have withdrawn around $100 million from exchanges. This outflow has decreased from -$63 million to -$40 million, a shift that indicates less willingness to sell ADA tokens. Typically, when investors move tokens off exchanges, it signals that they are holding their assets with the expectation that prices will rise. This can create upward price pressure, as fewer coins are available for sale on the market.

Why Cardano’s Bullish Sentiment is Strengthening

A closer look at Cardano’s on-chain data further supports the bullish case. One important metric, the Mean Dollar Invested Age (MDIA), reveals that the average age of ADA tokens has significantly decreased over the past 90 days. The MDIA measures the average age of tokens in circulation, weighted by their purchase price. A decline in the MDIA suggests that previously dormant tokens are being traded again, which can indicate increased buying interest and potential for a price increase.

As more previously inactive ADA tokens are being reactivated in the market, buying pressure could build, making it easier for ADA to rise. With more investors re-engaged, Cardano is positioned for a rally as long as the momentum continues.

Technical Indicators Point to Potential ADA Rally

From a technical perspective, Cardano’s 4-hour chart is showing bullish signs. A “bull flag” pattern has formed, a chart formation often seen during strong upward trends. The bull flag consists of two main components: a sharp price spike followed by a brief consolidation period, which creates a rectangular shape known as the “flag.” This pattern typically signals that once the consolidation ends, the price is likely to resume its upward movement, often with strong momentum.

ADA’s price has already formed the flagpole, represented by a rapid price increase driven by strong buying interest. The subsequent consolidation, which has created the flag, suggests that ADA may soon break out of this pattern and continue its rally. If the price breaks above the upper trendline of the bull flag, it would confirm the continuation of the bullish trend.

ADA Price Prediction: What’s Next for Cardano?

Looking ahead, the key levels to watch are $1.15 and $2.00. If Cardano’s price successfully pushes above the $1.15 resistance level, it could trigger a rally toward $2. The bullish chart pattern combined with strong on-chain activity suggests that this could be within reach, especially if the broader market stabilizes.

However, if selling pressure intensifies, there is a possibility that ADA could retrace to $0.85. Investors should be mindful of these price levels, as they will likely dictate whether Cardano can continue its upward trend or if it will face another pullback.

Conclusion: Is a Fresh ADA Surge Imminent?

With Cardano bulls withdrawing $100 million from exchanges and on-chain indicators showing a rise in activity among previously dormant tokens, the foundation appears to be set for ADA to surge again. The bull flag pattern on the 4-hour chart adds to the optimism, signaling that ADA could soon break out and head towards higher price targets.

While the current price of $0.98 might seem low to some investors, the recent technical and on-chain signals suggest that Cardano could be gearing up for another sustained uptrend. As long as the $1.15 resistance is cleared, ADA may be on track to test the $2 mark in the coming weeks. Investors should stay alert to these critical price levels as the market continues to evolve.