Cardano Eyes $0.82 Amid Massive Exchange Outflows and Channel Breakout

Cardano climbs 3% as bullish patterns form on the 4-hour chart. A MACD crossover and a $1B ADA outflow from exchanges hint at a breakout to $0.82.

As Bitcoin scales the $106,000 mark, altcoins are gaining momentum. Cardano is one such token, rising nearly 3% over the past 24 hours. With a bullish turnaround underway, ADA’s price trend suggests a potential channel breakout targeting the $0.82 resistance level.

Cardano Price Analysis

On the 4-hour price chart, Cardano displays a bullish trend, forming higher lows since last month. This has resulted in an ascending trend line connecting the rising low points.

In the short term, Cardano’s price trend shows a falling channel pattern as the altcoin declines toward the support trend line. A similar price action occurred in early May, with the formation of a falling wedge. However, a bullish crossover between the MACD and signal lines led to a breakout from that wedge pattern.

Now, with another bounce from within the declining channel, the MACD and signal lines again indicate a positive crossover. This suggests a possible breakout rally as Cardano approaches the overhead trend line.

However, the 4-hour RSI is flat and slightly below the midpoint, reflecting a slowdown in bullish momentum. The doji candle that has formed near the resistance line further confirms this.

As Cardano hovers near the upper boundary, a potential breakout could push the price to $0.82, which aligns with the 50% Fibonacci retracement level. This move would represent a more than 10% upside potential upon breakout.

On the downside, critical support for Cardano remains at $0.725, established on May 19. A close below this level could lead to a test of the lower boundary near the $0.70 psychological mark.

Will a Negative Supply Shock Boost Demand for Cardano?

Supporting the bullish outlook, a recent tweet from TabTools highlighted a massive outflow of Cardano from centralized exchanges. The tweet noted that nearly $1 billion ($932M) worth of ADA was withdrawn from exchanges in 2025, contributing to the bullish momentum toward a potential $3.10 all-time high.

As a significant amount of ADA exits CEXs, a surge in demand could drive the next leg of Cardano’s bull run.

BREAKING:

Nearly $1 billion worth of Cardano $ADA ($932M) has been withdrawn from centralized exchanges since the beginning of 2025.

The last time outflows approached this magnitude was in 2021, during ADA’s climb to its $3.10 all-time high. pic.twitter.com/YoL7baTr7u

— TapTools (@TapTools) May 19, 2025