Cardano Price Prediction: Supply Shock Looms as Massive ADA Withdrawals Could Fuel Next Rally Toward $1.20

ADA Cardano price is back on the radar after a 5.1% move today, pushing the price up to $0.7645, according to Cardano Feed. It’s not a breakout by any means, but it does mark a shift in tone; sentiment around ADA is starting to turn a bit more optimistic.

Cardano’s ADA climbs 5.1% to $0.7645, signaling renewed optimism as momentum builds ahead of key resistance. Source: Cardano Feed via X

This recent lift adds some weight to the Cardano price prediction. With momentum slowly building both on the charts and within the community, ADA’s approach toward the next resistance zone is beginning to look more encouraging.

Cardano’s current structure is forming within an ascending channel, and that’s worth paying attention to. As shown in the latest chart shared by analyst Ali Martinez, ADA has been respecting this upward channel for weeks, bouncing off lower support and forming higher lows, a classic bullish structure in technical terms.

Cardano continues to trade within a bullish ascending channel, eyeing $0.92 if $0.72 support holds. Source: Ali Martinez via X

The price is now hovering right near the critical support zone of $0.72, and maintaining this level could be the line between the bullish continuation. If ADA can hold this zone convincingly, the next leg up could target the $0.92 region, which aligns with the top of the ascending channel.

While ADA holds its technical ground near $0.72, Cardano’s on-chain data is starting to reflect that same momentum. According to DappRadar, network activity has picked up pace over the last week, with volume noticeably rising, especially on May 20th, where it nearly touched the $10M mark.

Cardano’s on-chain volume surged to nearly $10M on May 20. Source: DappRadar

This increase in on-chain activity adds credibility to the bullish setup mentioned earlier. When technical structure and network data both begin aligning, it often signals stronger conviction behind a move. If this trend continues, it could be the confirmation bulls are looking for to target higher levels in the coming sessions.

The latest data shared by TapTools reveals nearly $1 billion worth of ADA has been withdrawn from centralized exchanges since the start of 2025. This kind of outflow is often viewed as a sign of long-term conviction, where holders prefer self-custody over leaving assets exposed on exchanges. Interestingly, the last time Cardano saw outflows of this size was during its 2021 run-up to the $3.10 all-time high.

Nearly $1B in ADA exits exchanges in 2025, echoing patterns last seen before Cardano’s $3.10 all-time high. Source: TapTools via X

This shift in supply dynamics complements the technical picture. When a bullish chart setup and increasing on-chain activity are paired with sizable exchange outflows, it suggests that the current price levels may be seen as an accumulation zone and could lead to a supply shock.

Cardano’s price action is starting to look textbook as it grinds toward a key multi-month trendline resistance, highlighted in the latest chart by Leader Alpha. It’s not just any resistance; this line has capped ADA since its all-time high, making a breakout here especially significant in terms of long-term trend reversal.

Cardano nears breakout from multi-month resistance trendline, with upside targets at $1.20, $1.60, and possibly $3.00. Source: Leader Alpha via X

If ADA successfully flips this resistance, the first key target sits around $1.20, an area of prior liquidity and volume interest. Beyond that, a continuation toward $1.60 and potentially a re-test of the $3.00 ATH zone could come into play if broader market conditions cooperate. This makes the current zone an important technical inflection point for any medium-to-long-term Cardano price prediction.

Cardano has not triggered any breakouts yet, but the pieces are starting to line up. Between steady technical structure, rising on-chain activity, and clear signs of long-term holding behavior, ADA is quietly building a case for a larger move.

The big test now sits at the long-standing trendline that’s capped ADA since its all-time high. A clean breakout above that would do more than just push the price higher; it would shift the entire narrative.