Last Time This Happened Cardano Price Hit $3.1, Will History Repeat?

Cardano (ADA) price is rebounding strongly today, May 20, as Bitcoin (BTC) and most altcoins edge higher. ADA gains will likely continue after founder Charles Hoskinson tapped an audit firm to boost investor confidence after fraud allegations were brought against him. Despite these allegations, nearly $1 billion worth of ADA tokens have left centralized exchanges since 2025. Can this bullish development propel Cardano (ADA) to $3.10?

At press time, Cardano trades at $0.74 with a 3% intraday gain. Bulls are eyeing the $1 psychological level if ADA price flips crucial resistance.

Cardano Exchange Outflows Mirror 2021 Bull Run

According to data from CoinGlass, the total outflow of ADA tokens in 2025 from centralized exchanges hovers around $932 million. The last time an outflow of this magnitude was noted was in 2021 when the Cardano price hit an all-time high of $3.10. Now, ADA price is down roughly 75% from this peak. A drop in exchange holdings often signals that investors are confident in the underlying asset and expect a bullish performance.

Cardano Price Targets $1 Psychological Resistance Level

Cardano bulls are defending the crucial support level at $0.74, making it likely for the price to bounce and resume an uptrend. If ADA bounces from this support, it will likely revisit the $0.84 resistance, with a breakout set to propel it towards $1.32.

However, technical indicators show that Cardano price has to fall to the support zone between $0.68 and $0.74 first to attract buyers before an upswing happens. The RSI at 51 is at neutral levels with neither bulls nor bears having full control.

Meanwhile, the DMI indicator shows that ADA’s move to bullish zones may take longer, as the +DI tips south to converge with the -DI, confirming the loss of bullish strength and a looming bearish reversal.

If bears push Cardano into this support zone, it will likely rebound and break out to $3.1. Failure to do so will cause a bearish Cardano price forecast and push ADA to the $0.55 support level.

Upcoming Audit Report May Boost Rally

One of the key factors that may boost a Cardano price rally and the likelihood of a breakout to $1 is an upcoming audit report. The report follows allegations that Hoskinson rewrote ADA’s ledger to steal $619M.

Cardano’s Input Output Global has hired an audit firm and a law firm to prepare an audit report after probing these allegations.

Hoskinson noted that once the audit clears his name, he will step back from the public and tone down on crypto-focused discussions. He said,

“After the audit report comes out, I’m going to likely turn my X account over to a media team and change the format of my AMAs and X spaces.”

While Hoskinson has been instrumental in influencing Cardano price movements, a positive outcome in this audit report may aid a strong rebound. This is because, despite the recent gains posted by BTC, ETH, XRP, and other top altcoins this month, the ADA price has remained somewhat suppressed, with these claims hindering significant gains.

Binance Traders Flip Bullish on ADA

According to data from Coinglass, bullish momentum is swirling around Cardano’s price performance. In fact, 74% of traders on the Binance exchange have opened long positions on the coin, highlighting expectations that the altcoin will test new highs.

Meanwhile, ADA’s open interest remains elevated at $859 million, with the high leverage showing strong conviction among traders. This leverage and the market-moving news suggest that Cardano price is headed for volatility, and if buyers step in, ADA will target the $0.84 resistance level before reaching $3.1.