Cardano Investors Withdraw Millions, Signaling ​​Potential Price Rally

Exchange flows show investors are getting increasingly bullish on Cardano.

Holders of Cardano’s ADA token removed around $175 million from exchanges since Nov. 22, in four straight days of net withdrawals, marking the steepest net outflows since September 2021, according to Coinglass data. The move points to increased confidence in the asset’s long-term potential.

Experts believe this trend reveals growing confidence among ADA holders as they shift assets to private wallets. When holders withdraw tokens from exchanges, it can indicate they intend to hold rather than sell. That’s because tokens stored in private wallets are less accessible for trading, which reduces the available supply. In turn, this can drive prices up due to decreased selling pressure.

In contrast, when there is an increase in deposits to exchanges, it may indicate that holders are preparing to sell their tokens, increasing supply on the market and potentially causing prices to decline.

Robinhood Effect

ADA was relisted on Robinhood on Nov. 13 – nearly 17 months after the app ended support for the cryptocurrency.

The investment app re-listed the token just one week after Americans headed to the polls to re-elect crypto-friendly and former president Donald Trump into the presidential office.

Since Nov. 5, ADA has skyrocketed by more than 225%, according to CoinGecko. ADA is one of only 20 coins currently listed on the popular trading app.

Robinhood, which boasts 11 million active monthly users, introduces ADA to a large audience that might not typically engage with crypto exchanges.

Robinhood also added Solana (SOL), Pepe (PEPE), and XRP (XRP), which have increased by 15%, 24% and 92%, respectively, since going live on Robinhood.