Is Cardano Heading Back to $3.1? Will History Repeat Itself?

Cardano (ADA) is showing a strong recovery on May 20 as Bitcoin (BTC) and most altcoins move higher. With nearly $1 billion worth of ADA withdrawn from exchanges in 2025—similar to the outflows seen during the 2021 bull run—investors are wondering if ADA can once again reach its previous high of $3.1.

Currently, ADA is trading around $0.74, up 3% on the day. If this support level holds, the price could target the $0.84 resistance, and potentially break through to the psychological $1 mark. A successful breakout could push ADA further toward $1.32.

Data from CoinGlass shows that around $932 million worth of ADA has been pulled from centralized exchanges this year—the highest level since 2021, when ADA reached its all-time high. Exchange outflows often signal strong investor confidence and expectations for a bullish move.

However, technical indicators suggest ADA may first need to retest the support zone between $0.68 and $0.74 before making a sustainable upward move. The RSI sits at a neutral level of 51, indicating a lack of clear control by either bulls or bears. The DMI also shows weakening buying pressure, hinting at a possible short-term correction.

If bears push the price back into this support zone and no rebound occurs, ADA could slide to $0.55. On the other hand, a bounce from this zone could lay the foundation for a rally toward the $3.1 mark in the medium term.

Another key factor influencing ADA’s price is an upcoming audit report, following allegations that Cardano founder Charles Hoskinson manipulated ADA’s ledger to misappropriate $619 million. To restore investor confidence, Cardano’s development firm, Input Output Global, has hired an independent audit and legal team to investigate and release a full report.

Hoskinson has stated that once the report is released, he plans to step back from public appearances and hand over his social media accounts to a media team. A positive audit result could serve as a major catalyst to lift ADA out of its current stagnation.

At the same time, market sentiment appears to be shifting bullish. On Binance, 74% of traders have opened long positions on ADA, showing optimism about a potential price surge. Open interest remains high at over $850 million, suggesting strong conviction among traders.

If buyers maintain pressure and ADA breaks through the $0.84 resistance level, a return to $3.1 is well within reach.