The winds of change may once again be blowing in Cardano’s favor. After nearly $1 billion worth of ADA tokens exited centralized exchanges in 2025 alone, the stage appears to be set for a potential breakout—perhaps even a return to its all-time high of $3.10. This trend has sparked optimism among investors, especially as it mirrors similar movements during the 2021 bull run when ADA last reached that coveted price level.
As of May 20, ADA is trading at around $0.74, notching a 3% gain in the last 24 hours. While the price is still far from its historic high, bullish traders are increasingly hopeful that the current momentum, coupled with massive exchange outflows, may drive a long-term uptrend.
Exchange Exodus: A Bullish Signal?
According to data from Coinglass, roughly $932 million worth of ADA has flowed out of centralized exchanges since the beginning of the year. Historically, such large-scale withdrawals often signal investor confidence, suggesting that holders prefer to move their tokens into self-custody rather than risk them on exchanges—usually a bullish sign.
What makes this outflow particularly notable is its similarity to what occurred during the 2021 bull market, when ADA hit its all-time high of $3.10. While history doesn’t always repeat itself, crypto traders are betting that it often rhymes.
A Scandal and a Silver Lining
The bullish sentiment surrounding Cardano comes in spite of recent controversy. Allegations have surfaced accusing Cardano founder Charles Hoskinson of rewriting the ADA ledger to siphon off a staggering $619 million. In response, Input Output Global (IOG)—Cardano’s development arm—has engaged an audit firm and legal experts to investigate and release a full report.
Hoskinson, addressing the allegations, stated that once the audit is complete, he intends to step back from his public-facing roles and delegate his social media presence to a media team. While the scandal has cast a shadow over the project, the forthcoming audit could serve as a catalyst for renewed trust—especially if it clears Hoskinson’s name.
Technical Picture: Will $1 Be the Next Milestone?
The $1 level has emerged as a key psychological barrier for ADA, and technical indicators suggest it’s well within reach—if bulls can maintain momentum. ADA is currently holding support around $0.74. A successful bounce from this level could push the price toward $0.84 and, with enough volume, even higher to $1.32.
However, not everything is in the bulls’ favor. The Relative Strength Index (RSI) sits at 51, indicating a neutral market with no clear dominance between buyers and sellers. The Directional Movement Index (DMI) also reflects indecision, with the +DI line beginning to dip toward the –DI line, suggesting weakening bullish momentum.
Should ADA dip further, the next major support lies between $0.68 and $0.74. A breakdown below that could send the token back to $0.55, but a strong defense in this zone would likely revive bullish hopes and reignite the $3.10 conversation.
Traders Take a Bullish Stance
Despite the uncertainty, traders on Binance are overwhelmingly betting on ADA’s upside. Data shows that 74% of open positions on the exchange are long, indicating strong market sentiment. Open interest currently hovers around $859 million, and the high leverage positions suggest that traders are anticipating major moves in the near term.
This combination of bullish positioning, historical patterns, and ongoing developments around Hoskinson’s audit report could drive increased volatility in ADA’s price. If sentiment remains positive and the audit quells investor fears, the path toward reclaiming the $3.10 high may once again come into view.
In a market defined by sentiment and momentum, Cardano’s next move could very well hinge on the outcome of the audit and whether buyers continue to accumulate at current levels. If the past is any indication, ADA might just be gearing up for another historic run.
