Cardano (ADA) has seen a significant rise in the number of withdrawals from exchanges, with a total of 133.92 million ADA tokens being taken off the market. This surge in outflows has captured the attention of traders and analysts, suggesting that Cardano may be gearing up for a major price move. Historically, large withdrawals from exchanges indicate strong accumulation, often signaling the possibility of a price increase. But will this trend lead Cardano to a major price surge, potentially even to $3?

Understanding the Impact of Withdrawals

The withdrawal of such a large volume of ADA from exchanges is considered a positive signal for the token’s long-term price potential. When investors remove assets from exchanges and move them into cold storage or wallets, it reduces the available supply of ADA in the market. This reduction in supply can lead to upward price pressure, especially if demand remains strong.

Over the past week, Cardano has experienced its most significant withdrawal activity since its most recent all-time high (ATH), hinting at possible future price movements. At the time of writing, ADA’s market price is still below its ATH range, leaving room for potential upward movement.

Accumulation and Symmetrical Triangle Pattern

The accumulation is also reflected in Cardano’s price chart, which is currently moving within a symmetrical triangle pattern. This chart formation occurs when the price makes higher lows and lower highs, causing the trendlines to converge toward a point. In the case of Cardano, the price has established resistance around the $0.74 mark and support at $0.68.

A breakout above the $0.74 resistance level could trigger a price increase of around 15%, which would bring the price to approximately $0.85. A successful breakout would indicate a bullish trend and could lead to further price appreciation. However, if the price fails to hold above the support at $0.68 or breaks below it, the bullish setup may be invalidated, leading to potential declines.

Cardano’s Next Price Direction

The next few days will be crucial in determining the future direction of ADA. If the price stays above $0.72 and continues to consolidate within the symmetrical triangle pattern, the sentiment may shift from bearish to bullish. On the other hand, if the price drops below the key support levels, it could lead to more extended declines.

Traders are closely watching these developments, as Cardano’s price behavior in the coming weeks could signal whether the token is poised to reach new all-time highs or experience further downward pressure. If the bullish trend continues, Cardano could eventually see significant growth, potentially revisiting previous highs.

Coinbase Futures Contracts: A Game-Changer for ADA?

One factor that could contribute to a price surge for Cardano is the upcoming introduction of ADA Futures contracts on Coinbase. Coinbase Derivatives has filed for self-certification with the Commodity Futures Trading Commission (CFTC) to offer USD-settled ADA Futures contracts. If successful, this would allow both institutional and retail investors to trade Cardano with increased liquidity and access to more sophisticated strategies, such as hedging and leveraging.

The ADA Futures could attract greater demand for the token, as it opens up the market to a wider range of traders. This increased access and demand could drive the price of ADA higher, potentially helping the token move back toward its all-time high or even surpass it.

Conclusion

While it remains to be seen if Cardano will reach $3, the recent surge in withdrawals and the formation of a bullish chart pattern indicate that ADA may be setting up for a significant move. The upcoming introduction of ADA Futures contracts could further fuel demand for the token, leading to increased liquidity and greater market interest. For now, the next few weeks will be crucial in determining whether Cardano will break through key resistance levels and start climbing toward new highs. If the current accumulation and positive market sentiment continue, ADA could be well on its way to revisiting its all-time high and beyond.