Altcoins News

Story: Cardano Surges on Exchange Outflows and Bullish Chart Setup

By Maheen Hernandez

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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.

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The current surge in Cardano's price comes amid a broader rally in the crypto market, as Bitcoin recently crossed the $106,000 mark.

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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…

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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.

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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…

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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…

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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.

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Adding to the optimism around Cardano’s price trajectory is a massive shift in supply dynamics.

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This so-called negative supply shock reduces the available ADA for trading, increasing scarcity in the market.

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The combination of a tightening supply, bullish chart structures, and broader market recovery provides a compelling backdrop for ADA.

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In the near term, all eyes are on whether Cardano can break above the current falling channel and confirm the $0.82 price target.

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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…

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