Cardano sees a 3% increase as a bullish pattern forms on the 4-hour chart. An intriguing $1 billion ADA movement due to MACD crossovers and exchanges hints at a potential breakout at $0.82.
As Bitcoin reaches the $106,000 mark, altcoins are gaining traction. Cardano is one such asset, showing nearly a 3% rise in the last 24 hours. It’s displaying signs of a bullish reversal, with price trends indicating a possible breakout targeting resistance at $0.82.
Cardano Price Analysis
On the four-hour price chart, Cardano has established a bullish trend, indicating higher lows since last month. This has created an ascending trend line that connects these rising lows.
In the short term, the price trends suggest a possible pullback within the channel pattern as Cardano moves toward the support trend line. A similar situation occurred in early May, where a falling wedge formed. Yet, a bullish crossover between the MACD and signal lines led to a breakout from that wedge.
Currently, another bounce from the declining channel has produced a positive crossover between the MACD and signal lines again. This hints at a potential breakout rally as Cardano nears the upper trend line.
However, the 4-hour RSI appears flat, resting just below the midpoint, indicating a slight slowdown in the bullish momentum. Doji candles forming near the resistance line add to this indication.
With Cardano nearing the upper boundary, a breakout could push the price toward $0.82, which aligns with a 50% Fibonacci retracement level. This would imply a bullish opportunity of 10% or more if the breakout occurs.
Conversely, the critical support level for Cardano is around $0.725, established on May 19th. Falling below this could bring it closer to the psychological $0.70 mark.
Could negative supply shocks drive demand for Cardano?
Supporting the recent positive sentiment is a tweet from Tabtools, which noted a significant outflow of Cardano from centralized exchanges. According to the tweet, in 2025 alone, around $1 billion (or $932 million) worth of ADA was withdrawn, potentially setting the stage for a price surge to $3.10.
With such a substantial amount of ADA exiting centralized exchanges, an uptick in demand could catalyze another bullish run for Cardano.
About $1 billion worth of Cardano ($932 million) was withdrawn from centralized exchanges since the start of 2025. The last time outflows reached this level was back in 2021, coinciding with ADA’s all-time high of $3.10.
