Cardano price to rise to $1.5 amid bullish squeeze

Cardano price has been on a rampage for over a week now as investors poured massively into the price action, prepositioning for a relief rally. That plan has worked, with ADA price now looking set to extend its uptrend as more room opens up. Another 28% of profits are scattered around, ready to be harvested before bulls face a heavy area of resistance with multiple bearish elements present at around $1.52.

Cardano price to jump by at least 25%

Cardano (ADA) price has had a rough past 48 hours with bulls losing some heart at the monthly R1 resistance at $1.246 again. A double top has formed and could result in a fade to the downside. Looking more broadly at how price action has behaved, the lows are coming in higher and are revealing a brighter bullish story, as buyers get squeezed against the R1. A breakout could happen at any moment if bears just above the R1 get stopped out and need to join the bull-camp to cut their losses, resulting in even more buying action. With the positive wave in markets and a few tail risks being priced out, this looks to be the most probable outcome.

ADA price is thus on the cusp of breaking above $1.246 and opening a gap up towards $1.52, constituting a 28% price appreciation before bulls hit a trifecta of bearish elements, including the 200-day Simple Moving Average (SMA) and the R2 and a historical trend line all in the mix around the same level. As bulls go forward, $1.40 is likely to be overtaken, which will add to the psychological victory as new highs for the year will be in reach from there.

ADA/USD  daily chart

Not all tail risks are out of the equation, and as already mentioned above, the risk at hand could still be that the double rejection against the R1 has scared investors away. Next to that, the Relative Strength Index (RSI) is flashing red signals as it is trading in overbought and has little room for further upward movement. Expect a drop back to the green ascending trend line near the psychological $1.00 level for support and a possible rebound back up.