Cardano (ADA) is showing signs of renewed bullish momentum as it inches closer to a possible breakout, with analysts and traders eyeing a price target of $0.82. The altcoin has climbed 3% in the past 24 hours, driven by positive chart patterns and an unprecedented outflow of ADA from centralized exchanges, indicating growing investor confidence.

The current surge in Cardano’s price comes amid a broader rally in the crypto market, as Bitcoin recently crossed the $106,000 mark. This bullish momentum has spilled over into major altcoins, including ADA, which now finds itself at a critical technical juncture.

On the 4-hour chart, Cardano is displaying a well-defined bullish structure. The price has been forming higher lows since last month, establishing a strong ascending trend line that reflects growing buying interest with each dip. The price action in recent days has formed a falling channel, which is often considered a continuation pattern during uptrends.

Earlier in May, ADA experienced a similar pattern in the form of a falling wedge. That setup resulted in a breakout following a bullish MACD crossover, leading to a short rally. Currently, the same technical setup is playing out again, with the MACD and signal lines crossing upward from within the channel. This crossover is widely regarded by traders as an early indicator of potential bullish movement.

Despite these signals, momentum remains somewhat mixed. The 4-hour Relative Strength Index (RSI) is hovering slightly below the midpoint, suggesting that buyers are not yet in full control. A doji candlestick pattern forming near the channel’s resistance line further points to indecision in the short term.

Even so, if ADA breaks above the current resistance, the next likely target is $0.82. This level aligns with the 50% Fibonacci retracement, marking it as a key area for potential price rejection or continuation. A successful breakout to this level would represent more than 10% in upside potential from current prices.

On the flip side, immediate support lies at $0.725—the level established on May 19. A break below this could see ADA drop toward the $0.70 psychological level, which serves as the lower boundary of the current trading channel. Such a move would invalidate the bullish setup and may prompt sellers to re-enter the market.

Adding to the optimism around Cardano’s price trajectory is a massive shift in supply dynamics. A recent report by TabTools revealed that nearly $1 billion worth of ADA has been withdrawn from centralized exchanges in 2025 alone. This large-scale movement of ADA off exchanges typically signals that holders are opting for long-term storage rather than active trading—a pattern often seen before major price surges.

This so-called negative supply shock reduces the available ADA for trading, increasing scarcity in the market. With less ADA available on exchanges, even modest increases in demand can result in sharp price movements. Analysts believe this trend could serve as a key catalyst for Cardano’s next bull run, potentially paving the way toward its previous all-time high of $3.10.

The combination of a tightening supply, bullish chart structures, and broader market recovery provides a compelling backdrop for ADA. While technical resistance and momentum indicators warrant cautious optimism, the underlying fundamentals appear increasingly favorable.

In the near term, all eyes are on whether Cardano can break above the current falling channel and confirm the $0.82 price target. Should this occur, it would mark a significant step in ADA’s recovery and potentially open the door to even higher valuations as the crypto bull cycle unfolds.

As long as exchange outflows continue and technical patterns hold, Cardano may be positioning itself for a sustained upward move—one that could reshape its 2025 price outlook in a meaningful way.