Cardano formed a bearish flag pattern on its daily chart dated May 21, 2025. A bearish flag is a continuation pattern that appears after a sharp price drop, followed by a short-term upward consolidation within parallel trendlines, and typically signals further downside.
If this pattern confirms, Cardano (ADA) could drop nearly 32% from the current price of $0.7521 to approximately $0.5057.
The price recently rejected the upper boundary of the flag and now trades near the lower channel, just above the 50-day Exponential Moving Average (EMA), which stands at $0.7247. This EMA currently serves as dynamic support. However, if ADA closes below the lower trendline of the flag with strong volume, it would validate the bearish setup.
Meanwhile, the Relative Strength Index (RSI) reads 52.75. Although this level sits above the neutral 50 mark, it shows weakening momentum, especially as the RSI has started turning down from its recent high near 60.
At the same time, volume remains low during the flag formation, which matches classic characteristics of the pattern. A spike in volume during a breakdown would add confirmation to the 32% downside target toward $0.5057.
Cardano Heads to GITEX Europe 2025 in Berlin on May 21
Moreover, Cardano will take part in GITEX Europe 2025, held in Berlin from May 21 to 23. The event will focus on digital identity, data transparency, artificial intelligence, and blockchain in education. Cardano confirmed its participation in an official post on X.
Cardano representatives will discuss how blockchain supports secure identity systems, improves data handling, and integrates AI tools in public and educational sectors. The platform recently highlighted its efforts to promote decentralized solutions in real-world use cases.
Cardano is a public blockchain that supports smart contracts. It launched in 2017 and was created by Charles Hoskinson, one of Ethereum’s co-founders. Unlike many other platforms, Cardano uses a research-first approach based on peer-reviewed academic work.
It runs on a proof-of-stake system called Ouroboros. This method selects validators based on the amount of ADA tokens they hold, rather than using energy-heavy mining. As a result, the network runs more efficiently and is built to scale.
ADA Token Utility and Governance
The ADA token powers the Cardano network. Users can use ADA to send and receive transactions. More importantly, ADA holders can vote on proposals to upgrade the network. This governance model gives the community direct input on Cardano’s development.
Cardano’s blockchain uses two layers. The Cardano Settlement Layer (CSL) handles ADA transactions. The Cardano Computation Layer (CCL) manages smart contracts. This split structure helps keep the system secure and flexible.
By separating the transaction layer from the contract layer, Cardano can update parts of its system without affecting the entire network. This also makes it easier for developers to build reliable apps.
Cardano’s scientific approach, energy-efficient validation, and community voting model set it apart from other blockchains. Its goal is to provide a secure, scalable platform that supports real-world use and long-term growth.
At GITEX Europe, Cardano will showcase how its tech can support digital tools across education, identity, and AI
