Analyst Says Cardano Price Bullish After Liquidity Bounce And Strong HTF Uptrend, Targets $4.90

Key Insights:

• Analyst identifies bullish Cardano price trend with strong HTF structure.
• Cardano sees major exchange outflows and rising address activity.
• Retail and investor ownership increases as whale holdings decline.

Cardano (ADA) price broke higher between May 16 and May 22, 2025, rebounding from $0.71. The breakout pushed ADA near $0.80, sparking fresh analyst coverage as the token maintained a clear higher time frame (HTF) uptrend.

HTF Chart Revealed Strong Bullish Cardano Price Structure

Crypto analyst Lennaert outlined a bullish HTF trend in ADA, using a 4-day ADA/USDT chart. His analysis showed three rounded bottom formations since 2020—classic accumulation patterns.

The first major base formed between $0.19 and $0.24 in 2022–2023. ADA then set a higher low at $0.30 in late 2023, continuing its bullish sequence.

The third rounded bottom appeared near $0.51 in early 2025. Resistance zones at $0.74 and above $1.20 remained strong, yet ADA retained its higher highs and higher lows—marking a bullish continuation.

ADA Price Structure Remains Bullish

Lennaert noted that ADA has executed a clean bounce off a key liquidity zone, aligning with a strong higher time frame (HTF) uptrend. According to his analysis, the current price structure remains bullish.

He emphasized that a shift in overall altcoin momentum could trigger a substantial rally for ADA. His first major target is set at $4.90, which represents an estimated 511.82% increase from the May 22 price of $0.8007. Lennaert identified the previous all-time high (ATH) of $3.09 as a significant resistance level. A breakout above that level, he stated, would likely open the path toward his primary price objective.

In addition to the $4.90 target, Lennaert has outlined a longer-term extended projection for ADA at $7.7973.

Exchange Outflows Add to Bullish Case

Price action shows amid ascending structure, onchain activity has been backing it up. Data shared by TabTools said Cardano saw significant exchange outflows in 2025. During this period about $932M worth of ADA exited centralized exchanges.

This withdrawal trend has reduced the circulating supply on trading platforms, typically interpreted as a sign of long-term holding behavior.

Address Activity Spikes in Tandem With Price

In parallel with price growth, Cardano’s network activity has increased. Key address metrics surged as ADA approached the $0.80 mark. Specifically, new addresses rose by 4.79%, while active addresses climbed by 11.99%.

Zero balance addresses also increased by 12.26%, reflecting heightened engagement across the network.

Attention turning to Retail

Elsewhere, Cardano’s ownership dynamics have experienced a measurable shift over the most recent 30-day period, according to IntoTheBlock data. Whale addresses—typically defined as holding the largest supply of tokens—saw a decline of 1.68% in their share of ADA holdings.

Meanwhile, mid-sized investors increased their ownership by 1.60%, and retail holders posted a 0.72% gain. This movement indicates a gradual redistribution of ADA from high-concentration wallets to smaller, more distributed accounts across the ecosystem.

The ownership changes occurred alongside a notable price increase in ADA, which climbed to approximately $0.80 in May 2025. The chart reflects this momentum with a visible rise in the retail-held supply. With whales reducing exposure while retail and investor categories expand, the data signals a potential shift in market structure and sentiment surrounding Cardano’s asset distribution.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.