Whales Move ADA Off Exchanges—Could a Supply Squeeze Spark a Rally?

Cardano's (ADA) price trajectory has become a focal point for both retail and institutional investors as it hovers around critical technical levels, sparking renewed interest in price forecasts and market dynamics. Analysts are closely monitoring key Fibonacci retracement levels, with support at $0.7604 and resistance near $0.825 playing pivotal roles in shaping ADA's short- to mid-term performance. A breakout above $0.825 could potentially push ADA toward $0.901 and even $1.012, while a breakdown below $0.7604 may lead to a correction toward $0.726. These thresholds are being tracked by traders assessing risk-reward ratios amid heightened volatility in the broader crypto market [2].

The recent movement of ADA from exchanges by whale investors has added a layer of uncertainty to price predictions. According to reports, large-scale off-exchange activity suggests a potential "supply squeeze," which could drive upward pressure on ADA’s price if demand outstrips the reduced supply. This behavior is often indicative of bullish sentiment, especially when combined with continued inflows into liquidity zones above $0.780 and $0.798. Analysts suggest that such movements could pave the way for a sustained rally, particularly if ADA manages to retest and hold above the $0.825 level [1].

However, ADA's long-term prospects remain under scrutiny as capital increasingly shifts toward emerging projects offering higher growth potential. Layer Brett (LBRETT), an Ethereum Layer 2 project combining meme coin virality with institutional-grade infrastructure, is one such contender. With presale participation and a projected 16,000% staking APY, $LBRETT has attracted attention as a high-yield alternative. The project’s hybrid model—blending Ethereum’s scalability with meme token appeal—positions it as a compelling play for both retail and institutional traders seeking exponential returns. This shift in liquidity away from ADA raises questions about its ability to break the $1 level in the near term [4].

Competition in the altcoin space is further intensifying with the emergence of Remittix (RTX), a PayFi-focused project that has raised over $21.7 million and is preparing for a second CEX listing. RTX’s utility-driven model addresses real-world use cases such as fast cross-border transfers and low gas fees, setting it apart from purely speculative assets. With its upcoming beta wallet launch, RTX is gaining traction among investors looking for tangible value rather than speculative exposure. Analysts have noted that such projects could redefine altcoin growth narratives in 2025, potentially challenging ADA’s dominance [2].

Despite the growing competition, some analysts remain cautiously optimistic about ADA’s potential to reach $1.40 to $1.80 by 2026, with an average estimate hovering around $1.60. This projection is predicated on improved on-chain activity, renewed interest in Cardano’s upcoming upgrades, and a favorable macroeconomic environment for institutional inflows. However, most analysts agree that reaching $5 by 2026 is unlikely without a dramatic increase in volume and broader adoption of Cardano’s Hydra scaling solution [3]. The challenge for ADA lies in its position as a large-cap asset, which limits its ability to deliver exponential returns in a market increasingly driven by smaller, high-growth projects.

Source:

[1] Cardano Price Prediction: Whales Take ADA Off Exchanges (https://cryptonews.com/news/cardano-price-prediction-whales-take-ada-off-exchanges-a-500-supply-squeeze-rally-is-starting/)

[2] Cardano Price Prediction: Analysts Adjust Price Targets As New Competition Emerges in 2025 (https://crypto-economy.com/cardano-price-prediction-analysts-adjust-price-targets-as-new-competition-emerges-in-2025/)

[3] Cardano Price Prediction: Could ADA Reach $5 by 2026 as Investors Shift Attention to Remittix? (https://www.tribuneindia.com/partner-exclusives/cardano-price-prediction-could-ada-reach-5-by-2026-as-investors-shift-attention-to-remittix/)

[4] Cardano Price Prediction: Why ADA Price Could Be Stuck in the Mid-$0.70s (https://www.mitrade.com/insights/news/live-news/article-3-1073998-20250828)

[5] Cardano Price Prediction: Is the Window Closing to Buy ADA Under $1? Here Are the Best Sub-$1 Cryptos to Buy (https://www.barchart.com/story/news/34462320/cardano-price-prediction-is-the-window-closing-to-buy-ada-under-1-here-are-the-best-sub-1-cryptos-to-buy)