Cardano Nears $1 as U.S. Labor Woes Fuel Recession Fears
Cardano (ADA) is testing the critical $1 threshold as U.S. labor market weakness resurfaces. Youth underemployment surged to 17% in July, the highest since the pandemic, and overall unemployment ticked up to 4.2%. Historical patterns show that cracks in the U.S. job market can prompt investors to shift capital into alternative assets, boosting ADA price momentum.
On the daily chart, ADA price has recovered strongly since mid-July, trading above the 20-day SMA and consolidating near $0.94. Immediate support sits at $0.92, with a deeper cushion at $0.81. Resistance looms at $1.00, followed by targets at $1.10 and $1.25. A close above $1 could ignite FOMO buying and fuel a breakout.
If Fed easing follows rising unemployment, increased liquidity may push ADA toward $1.25–$1.30 by Q4 2025. However, heightened recession fears could trigger a retest of the $0.85–$0.90 zone before resuming an uptrend.
Bullish
The outlook is bullish. Historically, US labor market stress—like the 2020 pandemic spike in unemployment—has prompted Fed easing and injected liquidity into crypto, driving prices higher. The current surge in youth underemployment to 17% and a rise in overall unemployment to 4.2% may trigger similar Fed rate cuts, attracting fresh capital into Cardano.
Technically, ADA price has established a firm base above the 20-day SMA and is consolidating just below $1. A decisive close above $1 would likely spark FOMO buying, opening targets at $1.10–$1.25. In the short term, traders may chase the breakout; in the long term, sustained Fed support and institutional interest could reinforce the upward trend. A breakdown below $0.90 would invalidate the bullish thesis, but as long as ADA holds above key support, momentum remains on the upside.