Cardano ADA Price: Massive Whale Withdrawals Could Signal Possible Short Squeeze Rally
TLDR
Whales removed $170 million worth of ADA from exchanges in the past week, mainly from Coinbase, Upbit, and Binance
Over $109 million in short positions could face liquidation if ADA reaches $0.99 price level
Current price sits at $0.8697 with market cap of $31.07 billion and daily volume up 2.75%
Technical analysis shows potential rally to $4.50 if support holds at $0.75 level
Federal Reserve rate cuts expected to create favorable conditions for altcoin growth
Cardano has attracted attention from large investors who withdrew $170 million worth of ADA tokens from major exchanges over the past week. The withdrawals came primarily from Coinbase, Upbit, and Binance according to data from Cardanians.
Exchange withdrawals typically indicate bullish sentiment. When investors move tokens off exchanges, they reduce selling pressure and signal intent to hold long-term rather than trade.
The $170 million outflow represents 0.5% of Cardano’s circulating supply. Continued withdrawals at this rate could create a supply squeeze that drives prices higher.
MARKET: Over $170M worth of Cardano $ADA has been withdrawn in the past 7 days from centralized exchanges like Upbit, Binance or Coinbase.
That usually signals holders are moving their coins into self-custody. pic.twitter.com/ubDKw024Zr
— Cardanians (CRDN) (@Cardanians_io) August 25, 2025
ADA currently trades at $0.8697 with a market capitalization of $31.07 billion. The token gained 0.37% over the past 24 hours while trading volume increased 2.75% to $1.34 billion.
The daily price range stretched from $0.8465 to $0.8752, showing consolidation around current levels. This sideways movement follows ADA’s brief touch of the $1 resistance level earlier this week.
Technical analysis reveals ADA trading below the midline of its Bollinger Bands around $0.867. The upper band sits near $0.896 while the lower band forms support at $0.824.
The Relative Strength Index reads 49, indicating neutral momentum without strong bullish or bearish signals. This balanced technical picture suggests the market awaits a catalyst for the next directional move.
Short Squeeze Setup
Data shows over $109 million in short positions clustered near the $0.99 price level across major exchanges. Binance holds $164,500 in short liquidations, OKX has $55,100, and Bybit contains $126,500.
Source: Coinglass
If ADA price approaches $0.99, these leveraged short positions face forced liquidation. The resulting buybacks could create rapid upward momentum as shorts scramble to cover positions.
This liquidation cluster sits just above current trading levels. Any bullish breakout that reaches this zone could trigger cascading liquidations and accelerate price gains.
The concentration of shorts above market price creates an asymmetric risk-reward setup. Bulls need only modest buying pressure to reach the liquidation threshold and potentially spark a larger rally.
Cardano Price Prediction
Charts show ADA could drop to $0.75 before finding strong support. This level aligns with both the 200-day exponential moving average and a key trend line, creating confluence for potential buyers.
Source: TradingView
A bounce from $0.75 support could launch ADA toward initial resistance at $1.30. Breaking above that level opens the path to $4.50, representing potential gains of 508% from support levels.
The Federal Reserve plans to cut interest rates starting in September, with most analysts expecting a 25 basis point reduction. Lower rates typically boost appetite for risk assets like cryptocurrencies.
Cardano maintains its position as a proof-of-stake blockchain focused on sustainability and scalability. The network continues development of smart contract capabilities and decentralized applications.
Current price action suggests ADA trades in a consolidation phase before its next major move. The combination of whale accumulation, short liquidation risk, and improving macro conditions supports a bullish outlook for the token.
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Filed under: News - @ August 28, 2025 9:29 am