Cardano (ADA) Price Eyes a Massive Bull Run Amid Looming Supply Squeeze

Cardano price is on the verge of a massive rally after more than $20M ADA tokens left exchanges recently. Data from Coinglass indicates that in the last seven days,

Cardano (ADA) price has been on a tear lately, surging from a low of around $0.43 last week to highs of $0.75 on Wednesday. However, the buying pressure seems to be waning slightly, leading to a 1.3% drop in the past 24 hours.

At the time of writing, ADA is available for $0.71, placing it among the worst performers among the top 10 cryptocurrencies.

Despite this minor setback, Cardano price analysis suggests that the world’s eighth-largest cryptocurrency could be on the verge of a massive rally.

This is because traders have been pulling ADA out of top exchanges. In the past seven days alone, more than $20M ADA tokens have exited exchanges, according to data from Coinglass.

As exchange outflows increase and reduce the amount of cryptocurrency that is available for immediate trading, it might create a "squeeze." In essence, a surge in demand will push the coin's price upwards.

Moreover, analysts believe that Cardano will register a 100% rally and reach $1.46 in the coming months.

Cardano price analysis: A technical perspective

Looking at the technical perspective, trader “Justin Qu” on X (formerly Twitter) shared a bullish Cardano price forecast, suggesting that the price of this altcoin will soon skyrocket to new multi-month highs.

In his analysis, Justin stated that ADA had broken out of a descending wedge pattern on the daily timeframe, which is a classic sign of an upcoming bull run.

If ADA continues to defend support at the upper trendline of this wedge pattern, it might kickstart a strong rally towards the first resistance level at $1.24. Breaking this level will then set the stage for a rally to $1.46.

Hence, going by the surging outflows from cryptocurrency exchanges and the bullish forecasts shared by analysts on Cardano, this altcoin is likely on the verge of a major bullish breakout.

Cardano price analysis: Another bull market signal

A recent Coingape article notes that the Cardano price may hit $2.70 after another bull market signal emerged.

The article highlights that Cardano has witnessed a surge in Total Value Locked (TVL) on DefiLlama. At press time, Cardano’s TVL had ballooned to $442M, marking the highest level in nearly a month.

Another network metric that has also recorded an uptick is DEX volumes. At press time, Cardano’s DEX volumes stood at $3.87M, which is also a significant uptick in the last 24 hours.

As the network activity continues to grow, it is possible that Cardano price will attain the $1.46 target shared by analysts. However, for this price to be reached, this altcoin needs to record a surge in buying pressure, which might happen amid the ongoing growth in network activity.