Cardano
Will Cardano climb to $3 again after 133.92M ADA withdrawn from exchanges?
Posted:
Journalist
- 133.92M ADA has been withdrawn from exchanges over the week, signaling strong accumulation
- If Cardano busts out of this symmetrical triangle it could trigger a 15% price move
An analysis of Cardano’s [ADA] spot market movements and exchange balance changes showed a significant spike in net withdrawals. In fact, figures for the same climbed to hit its previous all-time high (ATH).
Cardano withdrawals from exchange platforms exceeded 133.92 million ADA over the previous week. Especially as accumulation reached its most significant levels since its most recent high.
Large withdrawals from exchanges in the market often signal future price movements because they decrease market supply, thereby raising prices. At the time of writing, the altcoin’s market price was below the ATH range – A sign that further price appreciation may have potential.
Source: Coinglass
Strong outflows, combined with previous price patterns, suggested Cardano has potential for new ATHs. Especially if market demand continues strong and general market conditions continue to be favorable.
Price accumulating in a symmetrical triangle
This accumulation has been backed by the consolidation taking place inside a symmetrical triangle, one where trendlines have been moving towards convergence. The altcoin’s price established resistance at $0.74, together with support at $0.68.
A price movement above $0.74 may initiate a 15% price hike that would guide ADA to potentially hit $0.85. The confirmation of volume might prove essential for strength formation.
However, ADA could drop to $0.60 or lower when resistance fails to hold or when the price breaks below $0.68. This would invalidate the bullish setup on the charts.
Source: X
A sustained bout of trading above $0.72 on the pattern might switch the prevailing market sentiment from bearish to bullish.
ADA’s next direction hinges on breakout confirmation. A price move above $0.74 could confirm the current trend, but any failure to exceed this level will result in more extended declines.
How Cardano might benefit from Coinbase derivatives filing
Finally, Coinbase Derivatives intends to release Cardano Futures contracts that will serve an audience estimated to be as large as 100 million users.
The filing for self-certification with the CFTC was made for USD-settled ADA Dutures contracts. According to Coinbase, the potential launch date is 31 March 2025.
ADA may receive significant benefits from this move because it will open doors for both institutional and retail investors who want to trade with greater liquidity. This will also enable access to complex strategies, which include leveraging and hedging.
Source: X
The altcoin’s price might climb due to greater demand resulting from expanded access. While recent exchange withdrawals demonstrates accumulation, this all together could push it back to its ATH.
The launch of ADA Futures contracts involves potential risks from shorting operations and market manipulation. Hence, they’ll need continuous monitoring after the product release.
