Cardano Price Analysis: ADA Bears Fail To Drop Below 20-day SMA
Daily Cardano ADA Price Forecast
- Cardano price has strongest resistance at $1.67.
- MACD shows increasing bearish momentum.
Between May 30 and June 3, the Cardano price jumped from $1.395 to $1.84.and flipped the 20-day and 50-day SMAs from resistance to support. Following this, the bears have taken control of ADA and crashed it down to $1.60.
Cardano Price Sits On Top Of Crucial Level
Looking at the daily Cardano price chart, we can see that the 20-day SMA has provided powerful support. As things stand, ADA bears have failed to break below this level. Keep in mind though that the MACD shows increasing bearish market momentum, the relative strength index still has room to drop before Cardano becomes oversold.
Image: ADA/USD daily
Looking at the IOMAP, we can see that Cardano price has healthy support at the 50-day SMA. Previously, at this level, almost 72,000 addresses had purchased over 1.16 billion ADA tokens.
Professor Kiayias Describes Why Cardano Is Unique
Professor Aggelos Kiayias, Chief Scientist at IOHK, recently shared his views on blockchain interoperability, energy consumption, and security, etc. In an interview with “Cyber Protection Magazine," he expressed his thoughts on several topics.
When asked about the security issues of existing blockchains, Kiayias pointed out Elon Musk's remarks about speeding up Dogecoin. The Professor said that the "number of blocks that the network produces in a given length of time each block travels the network in a predictable time and an adversary can be held off by the miners following established protocols." However, increasing that travel time by an order of magnitude as Musk suggests without making any fundamental modifications in the underlying protocol design, protection against adversaries decreases accordingly, Kiayias added.
Commenting on energy consumption of blockchain consensus mechanisms, Kiayias said:
Energy inefficiency is built into Bitcoin and will only worsen, as its price rises… Bitcoin draws its security from the energy-intensive proof of work process, in which Bitcoin miners use their computing power to compete to solve random, complex cryptographic puzzles, with the first to solve the puzzle earning the right to mint the next block of data on the Bitcoin ledger…
The scientist added that IOHK has developed a "highly efficient" PoS protocol and that they were the first to formally propose such a system and have it accepted for publications to a major Cryptology Conference. The Ouroboros protocol sees the entire global blockchain network powered with the energy usage of just a single-family home, he added.
When asked about blockchain interoperability, Kiayias said that blockchain companies need to build solutions that can work together. He added that Cardano is unique because it was built with interoperability in mind.
As for quantum cryptography, the scientist noted:
With Google claiming to have solved the ‘holy grail’ of quantum supremacy, there was much fear that quantum computing could leave conventional security protocols and even blockchain vulnerable to quantum attacks… However, in collaboration with researchers at Texas A&M University and the University of Edinburgh, we have already shown that the Bitcoin design can be adapted for post-quantum resilience and in upcoming work, we will be extending these results to the more challenging setting of Proof of Stake protocols like Ouroboros.
Cardano Price Is Expected To Reach These Levels
Due to the increasing bearish signals, our prediction remains the same. The Cardano price will probably break below the 20-day SMA and reach the 50-day SMA.