Cardano (ADA) has experienced a notable rebound, fueled by a steady recovery in the broader altcoin market. After a dip earlier in the week, ADA has successfully defended its key $1 support level, making it a focal point for traders. As the altcoin sector experiences a resurgence, many are wondering if $1.5 is the next logical price target for Cardano, especially given its recovery momentum.

ADA Defends the $1 Support

Cardano’s recent price action shows a clear effort to hold the $1 support level, a psychological barrier for many investors. This strong defense has helped ADA recover nearly 30% in value, signaling renewed investor confidence. The altcoin reclaimed the 4-hour 50-EMA (Exponential Moving Average), suggesting a short-term bullish trend.

Despite the promising signs, ADA faces some challenges before it can surge further. A crucial question for the bulls is whether Cardano can maintain its support at $1 and continue its ascent. A decisive move above key resistance levels could open the door to further gains.

Key Levels to Watch: $1.25 and $1.5

ADA’s immediate price targets lie between $1.25 and $1.5. The $1.25 level has significant liquidity due to the presence of leveraged short positions in that range. According to data from Bybit’s liquidation heatmap, there is a substantial amount of leveraged short positions (over $143 billion) between $1.23 and $1.25. This could attract price action, potentially pushing ADA toward these levels.

However, it’s worth noting that if ADA fails to break above $1.25, it may face resistance and struggle to maintain its upward momentum. A successful move above $1.3 could pave the way for ADA to target $1.5 as the next significant resistance.

The Historical Context: ADA’s Past Price Movements

Looking at past price movements, there is an interesting parallel to 2021 when ADA fluctuated between $1 and $1.5 for several weeks before making a substantial move toward $3. If history repeats itself, ADA could tap the $1.5 mark in the near future.

The possibility of Cardano reaching $1.5 becomes more likely if the altcoin continues to defend its $1 support and sustains its bullish momentum. The $1.5 target could become a matter of “when,” rather than “if,” provided the broader market remains favorable.

Liquidity as a Key Driver

Liquidity continues to play a vital role in ADA’s price action. The $1.0 level also holds significant liquidity, with over $40 billion worth of leveraged long positions piling up around that price point. As ADA moves closer to $1.25 and $1.3, it is likely to encounter more liquidity, which could either propel it forward or cause a temporary retracement.

Based on the current liquidation heatmap, ADA’s price action is likely to focus on the $1.23–$1.25 range in the short term. A break above these levels could lead to a move toward $1.5, but ADA may need to overcome resistance at $1.3 before it can challenge the $1.5 level.

Conclusion: Is $1.5 the Next Stop for ADA?

Cardano’s price action in December suggests a healthy recovery and a possible move toward $1.5, especially if the altcoin can maintain its $1 support. The proximity to key liquidity levels around $1.25 and $1.3 will likely determine ADA’s next steps.

For ADA bulls, the next few days are crucial. A sustained move above $1.3 could open the door to $1.5, but failure to break through resistance may result in a pullback to lower levels. As always, Cardano’s price movement will depend on broader market conditions and the continued defense of key support levels.