Cardano shaped a bearish flag sample on its day by day chart dated Could 21, 2025. A bearish flag is a continuation sample that seems after a pointy price drop, adopted by a short-term upward consolidation inside parallel trendlines, and sometimes alerts additional draw back.

If this sample confirms, Cardano (ADA) may drop practically 32% from the present price of $0.7521 to roughly $0.5057.

The price just lately rejected the higher boundary of the flag and now trades close to the decrease channel, simply above the 50-day Exponential Shifting Common (EMA), which stands at $0.7247. This EMA presently serves as dynamic help. Nevertheless, if ADA closes under the decrease trendline of the flag with sturdy quantity, it might validate the bearish setup.

In the meantime, the Relative Energy Index (RSI) reads 52.75. Though this stage sits above the impartial 50 mark, it exhibits weakening momentum, particularly because the RSI has began turning down from its latest excessive close to 60.

On the similar time, quantity stays low in the course of the flag formation, which matches basic traits of the sample. A spike in quantity throughout a breakdown would add affirmation to the 32% draw back goal towards $0.5057.

Cardano Launches Forensic Audit Into Unclaimed ADA Vouchers Amid Redemption Controversy

In the meantime, a third-party forensic audit of Cardano’s long-running voucher redemption program is now underway. Enter Output World (IOG) has confirmed that world regulation agency McDermott Will & Emery (MW&E) and accounting agency BDO have been appointed to audit and publish a public report on ADA redemption. IOG’s chief authorized and coverage officer, Joel Telpner, mentioned each corporations would start work instantly.

The engagement follows weeks of scrutiny over allegations that lots of of hundreds of thousands of unclaimed ADA had been diverted throughout a 2021 ledger occasion. The audit goals to ship a complete historic report of every presale token, together with its redemption standing and present location.

Cardano Audit Underway as Hoskinson Denies 318M ADA Misuse Allegations

Telpner defined that MW&E, which has 1,400 attorneys throughout 24 world workplaces, and BDO, which runs a digital-asset forensics division, have been instructed to ship outcomes “as soon as humanly possible.” He additionally confirmed {that a} blockchain analytics agency will be a part of the audit as soon as battle checks are full.

On the similar time, Emurgo, one in all Cardano’s founding entities, supported the audit and urged the group to await the outcomes. It said that the community redeemed practically all presale vouchers and rendered the remaining fraction unspendable after the Shelley exhausting fork. Emurgo added that the staff made an on-chain transfer to protect redemption rights and described some latest criticism as “excessive” and missing full context.

On Could 19, the Cardano Basis launched a separate assertion. Whereas it famous that it had no direct function in post-2021 voucher administration, it acknowledged that IOG has led the trouble to achieve remaining voucher holders over the previous 4 years.

Strain for transparency intensified after NFT artist Masato Alexander posted a thread on Could 7, accusing IOG founder Charles Hoskinson of utilizing “genesis keys” in the course of the Allegra exhausting fork to reassign 318 million ADA—then valued at $619 million—from unredeemed presale wallets to treasury accounts by means of a Transfer Instantaneous Rewards (MIR) transaction.

No publication date has been set for the audit report. Telpner admitted,

“As of today I honestly don’t know,”

however reaffirmed that each corporations have been instructed to make the report public as quickly as potential.

Cardano Heads to GITEX Europe 2025 in Berlin on Could 21

Furthermore, Cardano will participate in GITEX Europe 2025, held in Berlin from Could 21 to 23. The occasion will give attention to digital id, information transparency, synthetic intelligence, and blockchain in schooling. Cardano confirmed its participation in an official submit on X.

Cardano is a public blockchain that helps good contracts. It launched in 2017 and was created by Charles Hoskinson, one in all Ethereum’s co-founders. Not like many different platforms, Cardano makes use of a research-first method primarily based on peer-reviewed tutorial work.

It runs on a proof-of-stake system known as Ouroboros. This methodology selects validators primarily based on the quantity of ADA tokens they maintain, quite than utilizing energy-heavy mining. Because of this, the community runs extra effectively and is constructed to scale.

ADA Token Utility and Governance

The ADA token powers the Cardano community. Customers can use ADA to ship and obtain transactions. Extra importantly, ADA holders can vote on proposals to improve the community. This governance mannequin provides the group direct enter on Cardano’s growth.

Cardano’s blockchain makes use of two layers. The Cardano Settlement Layer (CSL) handles ADA transactions. The Cardano Computation Layer (CCL) manages good contracts. This break up construction helps hold the system safe and versatile.

By separating the transaction layer from the contract layer, Cardano can replace components of its system with out affecting the complete community. This additionally makes it simpler for builders to construct dependable apps.

Cardano’s scientific method, energy-efficient validation, and group voting mannequin set it other than different blockchains. Its objective is to offer a safe, scalable platform that helps real-world use and long-term progress.

At GITEX Europe, Cardano will showcase how its tech can help digital instruments throughout schooling, id, and AI