Cardano currently ranks as the 10th largest cryptocurrency by market capitalization, according to CoinMarketCap. In the last 24 hours, it has recorded a trading volume of $1.7 billion, reflecting a 6.77% increase in activity. ADA itself is trading at $0.865, up 0.44% within the same timeframe. These figures show modest but steady growth, yet the exchange flow data tells a more complex story about how investors are positioning themselves.
Exchange Flows Reveal Diverging Sentiment
The chart tracking ADA’s exchange flows highlights periods of both sharp inflows and outflows. Over the past year, spikes in exchange inflows (green bars) often coincided with local price drops. This pattern suggests that investors tend to move ADA into exchanges when they are preparing to sell, putting downward pressure on the price. Conversely, significant outflows (red bars) usually appear when investors withdraw tokens to private wallets, a signal that they are holding with long-term conviction.
Notable Inflow and Outflow Spikes
Two standout events can be observed:
- In late February, ADA experienced one of its largest inflow spikes, exceeding $4 billion. This surge in exchange supply contributed to a sharp decline in ADA’s price as selling pressure mounted.
- In mid-August, another dramatic outflow appeared, with investors pulling large amounts of ADA from exchanges. This coincided with a modest rebound in price, suggesting accumulation by long-term holders.
These patterns emphasize the strong correlation between exchange flows and ADA’s short-term volatility.
Related article: Cardano ETF Delay Extends Market Uncertainty, ADA Price Slips
Current Market Behaviour
Currently, ADA’s chart reflects a balanced but cautious sentiment. While the price has risen slightly to $0.865, the inflow/outflow bars show a mix of red and green. This indicates that while some investors are positioning to hold, others are still cashing out, leaving the market in a tug-of-war between bulls and bears.
For ADA to sustain upward momentum, outflows must dominate, signalling confidence in long-term holding. If inflows rise again, it could indicate increased selling pressure that caps gains near the $0.90–$0.95 range.
What Traders Should Watch Next
The key area to monitor is ADA’s reaction around the $0.85–$0.90 price zone. Continued accumulation and larger exchange outflows could push ADA closer to $1.00, a psychologically important level that often drives fresh retail interest. On the other hand, renewed inflows may signal caution and lead to a retest of the support level around $0.75.
Conclusion: A Balancing Act Between Optimism and Caution
Cardano remains one of the most resilient assets in the crypto market, supported by a strong community and consistent development. However, the exchange flow data shows that investors are divided, some are quietly accumulating while others continue to sell into strength. Until a clearer trend emerges, ADA’s price action is likely to remain volatile, hovering between cautious optimism and looming resistance.
