Cardano (ADA) is experiencing volatility, hovering around the 0.85 level. We explore how macroeconomic policy impacts cryptocurrency prices.
The Link Between Aggregate Demand and Cardano's Price
Aggregate demand reflects the total demand for goods and services in an economy, driven by consumer spending, investment, government expenditure, and net exports. When aggregate demand rises due to expansionary fiscal or monetary policy, risk assets like cryptocurrencies generally benefit. Increased liquidity in the economy boosts risk appetite, and ADA often rides those cycles. Conversely, when central banks tighten monetary policy or governments cut back on spending, liquidity drains from markets, weakening ADA’s upward momentum.
ADA Price Chart Analysis
On the daily chart, ADA price trades at 0.85, near the middle Bollinger Band (0.88), which acts as immediate resistance. Recent candles exhibit indecision with multiple red Heikin Ashi prints, signaling fading bullish momentum after a strong rally in July. Fibonacci levels indicate resistance at 0.90 (0.382) and 1.00 (0.618) if Cardano price regains strength. A break above 0.90 would open the door for a test toward 1.10. On the downside, the 0.79–0.80 zone is strong support near the lower Bollinger Band. A breakdown below this could accelerate losses toward 0.70.
Short-Term Cardano Price Prediction
In the immediate term, ADA price is likely to oscillate between 0.80 and 0.90 as markets await policy signals. A breakout above 0.90 could confirm renewed bullish momentum, targeting 1.10 in the coming weeks. If macroeconomic conditions remain favorable, Cardano price could even push toward 1.40. However, if aggregate demand contracts due to tighter monetary conditions, ADA risks slipping below 0.80, opening a path toward 0.70.
Cardano’s price is not only about chart resistance and support; it relates to the aggregate demand in the global economy. Expansionary fiscal and monetary policies would provide strong support for ADA, while contractionary measures could trigger losses. Traders should closely monitor macroeconomic updates and the 0.80–0.90 range.
