Cardano Price Prediction: ADA Flashes Multiple Sell Signals In The Daily Chart
Daily Cardano ADA Technical Analysis
- Cardano price sits on top of 20-day SMA.
- MACD has reversed from bullish to bearish.
From May 30 to June 3 the Cardano price jumped from $1.40 to $1.84 and flipped the 20-day and 50-day SMAs from resistance to support. Following that, the bears have taken control of ADA and crashed it down to $1.70 over the next three days.
Cardano Price Flashes Two Negative Signals
Looking at the daily Cardano price chart, we can see that securing the 20-day SMA as a support barrier was crucial since it has prevented a further downtrend. The MACD has reversed from bullish to bearish and the parabolic SAR indicates negative market sentiment.
Image: ADA/USD daily
Looking at the IOMAP, we can see that Cardano price is sitting on top of healthy support at the 20-day SMA. Previously, at this level, almost 77,300 addresses had purchased over 1.44 billion ADA tokens.
Vitalik Buterin Has His Doubts Over Cardano’s “Scientific Method”
Several industry experts believe that Cardano’s design and philosophy are based upon improving the weaknesses Charles Hoskinson identified during his time working for Ethereum. In particular, the slow and steady ethos, as well as the academic rigor it takes.
But in responding to the question of the role of deep research in cryptocurrency, Vitalik Buterin, the CEO of Ethereum, said it’s not all that it’s cracked up to be.
I’m actually the sort of person who thinks deep academic rigor is overrated.
Speaking on the Lex Fridman Podcast, Buterin said that Cardano offers interesting ideas. However, he posited that both projects take fundamentally different philosophical approaches, in that Ethereum focuses on speed over academic proofs.
They really emphasize having these big academic proofs for everything. Whereas Ethereum tends to be more okay with heuristic arguments, in part because it’s trying to do more faster. But there’s definitely interesting things that come out of IOHK.
A heuristic approach refers to any problem-solving method that uses a practical approach to get solutions that may not be optimal but “will do” in a limited time frame.
When pressed on the role of academic research in cryptocurrency, Buterin justified his position by calling it overrated. His reason for thinking this comes down to believing that protocol failures outside the model are more influential than failures within the model.
Additionally, he mentioned the limitations of formal language.
Ultimately, what you’re trying to achieve can never be fully described in formal language. This is the big discovery of the AI safety people, right?
Cardano Price Is Expected To Reach These Levels
As things stand, the Cardano price will probably break below the 20-day SMA and reach the 50-day SMA.