Cardano (ADA) price is gaining alongside the broader crypto market, and is eyeing a move past $1 after a major short squeeze. Amid these gains, ADA teases to overcome a crucial resistance level as a breakout from a bullish channel hints towards more gains.
Cardano (ADA) Price Today
Cardano price trades at $0.78 at press time with an impressive 10% gain in 24 hours and an intraday high of $0.81. During this period, ADA has added more than $3 billion to its total market cap.
ADA’s rally today, May 9, follows a surge in buy-side activity as data from CoinMarketCap shows that trading volumes have risen by 101% to $1.6 billion. This increase hints that Cardano may reach $1 if it can overcome the resistance level of $0.85.
Key Levels to Watch in ADA Price
The main level to watch as Cardano price rallies is the 200-day SMA of $0.78. ADA attempted a breakout from this level on Friday after hitting a multi-week high of $0.81 before facing a swift rejection. Traders should watch if the altcoin can 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. Just like with the 200-day SMA, Cardano needs to turn this resistance line into a strong support that will sustain its bullish momentum.
Once ADA overcomes 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 resumes the rally and tests 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.
The post Key Cardano Price Levels to Watch Amid Channel Breakout, $3.7M Short Squeeze appeared first on CoinGape.
