Cardano (ADA) price is rebounding strongly today, May 20, as Bitcoin (BTC) and most altcoins edge higher. ADA gains will likely continue after founder Charles Hoskinson tapped an audit firm to boost investor confidence after fraud allegations were brought against him. Despite these allegations, nearly $1 billion worth of ADA tokens have left centralized exchanges since 2025. Can this bullish development propel Cardano (ADA) to $3.10?
At press time, Cardano trades at $0.74 with a 3% intraday gain. Bulls are eyeing the $1 psychological level if ADA price flips crucial resistance.
Cardano Exchange Outflows Mirror 2021 Bull Run
According to data from CoinGlass, the total outflow of ADA tokens in 2025 from centralized exchanges hovers around $932 million. The last time an outflow of this magnitude was noted was in 2021 when the Cardano price hit an all-time high of $3.10. Now, ADA price is down roughly 75% from this peak. A drop in exchange holdings often signals that investors are confident in the underlying asset and expect a bullish performance.
Cardano Price Targets $1 Psychological Resistance Level
Cardano bulls are defending the crucial support level at $0.74, making it likely for the price to bounce and resume an uptrend. If ADA bounces from this support, it will likely revisit the $0.84 resistance, with a breakout set to propel it towards $1.32.
However, technical indicators show that Cardano price has to fall to the support zone between $0.68 and $0.74 first to attract buyers before an upswing happens. The RSI at 51 is at neutral levels with neither bulls nor bears having full control.
Meanwhile, the DMI indicator shows that ADA’s move to bullish zones may take longer, as the +DI tips south to converge with the -DI, confirming the loss of bullish strength and a looming bearish reversal.
If bears push Cardano into this support zone, it will likely rebound and break out to $3.1. Failure to do so will cause a bearish Cardano price forecast and push ADA to the $0.55 support level.
Upcoming Audit Report May Boost Rally
One of the key factors that may boost a Cardano price rally and the likelihood of a breakout to $1 is an upcoming audit report. The report follows allegations that Hoskinson rewrote ADA’s ledger to steal $619M.
Cardano’s Input Output Global has hired an audit firm and a law firm to prepare an audit report after probing these allegations.
Hoskinson noted that once the audit clears his name, he will step back from the public and tone down on crypto-focused discussions. He said,
“After the audit report comes out, I’m going to likely turn my X account over to a media team and change the format of my AMAs and X spaces.”
While Hoskinson has been instrumental in influencing Cardano price movements, a positive outcome in this audit report may aid a strong rebound. This is because, despite the recent gains posted by BTC, ETH, XRP, and other top altcoins this month, the ADA price has remained somewhat suppressed, with these claims hindering significant gains.
Binance Traders Flip Bullish on ADA
According to data from Coinglass, bullish momentum is swirling around Cardano’s price performance. In fact, 74% of traders on the Binance exchange have opened long positions on the coin, highlighting expectations that the altcoin will test new highs.
Meanwhile, ADA’s open interest remains elevated at $859 million, with the high leverage showing strong conviction among traders. This leverage and the market-moving news suggest that Cardano price is headed for volatility, and if buyers step in, ADA will target the $0.84 resistance level before reaching $3.1.
Frequently Asked Questions (FAQs)
Cardano price can overcome bearish headwinds and reach $3.10 after $1B ADA tokens left exchanges. Declining exchange outflows highlight rising investor confidence.
The upcoming audit report will have a bullish impact on ADA’s price if it clears Hoskinson of fraud allegations. This may also be a catalyst that pushes ADA to $3.10.
74% of Binance traders are going long on Cardano showing a bullish bias as they anticipate the altcoin will extend gains. Exchange outflows have also dropped significantly, which is bound to have a bullish impact on price.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/last-time-this-happened-cardano-price-hit-3-1-will-history-repeat/
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