Cardano (ADA) Price Prediction Today: Will ADA Reach $1 as the Market Rallies?

Cardano (ADA) price is gaining alongside the broader crypto market, and is eyeing a move past $1 after a major short squeeze.

Cardano (ADA) price is continuing to rise alongside the broader crypto market, and is now eyeing a move past $1 after a major short squeeze saw buy-side traders take control of the market.

As ADA price threatens to breakout from a crucial channel, hinting towards more gains, traders are wondering what key levels to watch for next in the altcoin.

What Levels to Watch As Cardano Price Rallies

The main level to watch as Cardano price rallies is the 200-day SMA of $0.78, which is also a round notional handle.

ADA attempted a breakout from this level on Friday after hitting a multi-week high of $0.81 before facing a swift rejection.

After bouncing lower, traders should watch if the altcoin can manage to make a decisive close above it to confirm that the upward trend will continue.

The other key ADA level to watch is the upward sloping resistance of the parallel channel that began in March.

Just like with the 200-day SMA, Cardano needs to manage to turn this resistance line into a strong support that will sustain its bullish momentum.

Once ADA manages to overcome this resistance level and flips the 50% Fibonacci level of $0.84, a rally towards $1 will ensue, which will spark a bullish Cardano price forecast.

Conversely, key support levels below the current price will also form the case of whether ADA extends gains.

The main key support level to watch is the 50-day SMA of $0.67. If it slips below this support, Cardano could crash towards $0.51.

However, as long as ADA price continues to form a series of higher highs after breaking out of the parallel channel and the RSI continues to rise, the uptrend will continue.

$3.7M Squeeze Aids Cardano Rally As More Short Liquidations Loom

One of the factors that may have aided the recent Cardano price rally is a short squeeze that saw more than $3.7 million in positions being wiped out in 24 hours.

This marked the highest number of short ADA liquidations in nearly two months.

Data from Coinglass shows that there are more short sellers at risk of liquidation if ADA price manages to resume the rally and test the intraday high of $0.81 again.

According to the liquidation map, nearly $6M positions face closure if Cardano pushes past this level.

The increase in short liquidations as Cardano price rallies suggests that the altcoin may soon surpass $1 as buy-side pressure grows.

If this psychological level is overcome, ADA may outperform other altcoins and the broader crypto market to target new highs.