Cardano Surges by 50% Ahead of SundaeSwap Launch

ADA has finally cranked the price above its high. A lot of excitement has risen over the launch of the SundaeSwap DeFi exchange. According to data, Cardano is trading within a remarkable three-week high at the beginning of this week.

The bullish rally may be in anticipation of the coming launch^[1] of the DeFi DEX- SundaeSwap. In 24 hours after the announcement of the SundaeSwap DeFi, which is now fully operational, ADA has risen by about 13% to settle at an intraday high of $1.60. 

ADA’s Weekly Rebound after 2024 Slump 

The upside we are seeing is also due to the general rebound trend that has given ADA a jump by 50% in one week. The rebound is in sync with similar backtracking moves in the broader crypto market, including BTC. BTC has sharply been retracing its trend, dipping to as low as $39550.

At the time of writing, BTC is trading at $41750 with a 24hr trading volume of about $18,652,450,533. Initially, ADA was tailing the crypto market reversal, but afterward, the token made a continuation to the upside.

Cardano is now appearing to be one of the best-performing tokens ranking top ten according to Coingecko. The token will soon be attaining the title of the fully-functional smart contracts platform.

At writing, Cardano is trading at $1.45 with a 24hr trading volume of about $3,525,054,429. This is a 9.1% drop from $1.60 in the last 24hrs.

Can 2022 be a bullish year for Cardano and the crypto industry? Not really in check, but the short volatility is a sure bet nonetheless.

Is Sundaeswap Bullish for ADA?

SundaeSwap’s official launch announcement reveals evidence of the more significant need for ADA tokens in the future. This necessitates the bullish run for ADA and its investors.

SundaeSwap will present its native token, the SUNDAE token, to investors. It will also be discussing the three ways it will spread the token among users and investors. These include Initial coin Offering (ISO), Yield farming and direct exchange.

The DeFi will allocate 5% of the total SUNDAE supply during the ISO through five epochs. Each epoch will illustrate a five-day reward cycle. Users will need to entrust their ADA token in the stake pool. Moreover, SundaeSwap is the first DeFi DEX utilizing the Cardano smart contracts.

Many investors analyze this as a potential bullish trigger for the altcoin. According to the announcement by the DeFi DEX, to ensure you qualify for all the five reward rounds, you need to stake your ADA tokens with qualified Stake Pool Operates (SPOs).

The rewards will be figured based on the snapshots taken simultaneously at each successive epoch trim. Meanwhile, the yield farming program has seen the ADA liquidity pools adding to the SundaeSwap DeFi DEX.

These include SUNDAE/ADA, LQ/ADA, WMT/ADA, and CARDS/ADA. SundaeSwap is also allocating about 500,000 SUNDAE since January going all the way to June 2022.

Will ADA Hit $2 Soon? (Price Analysis)

The SundaeSwap will contribute to the bouncing back of ADA prices, looking at its 100-day exponential moving average leading to ADA hitting $1.61. Furthermore, the bullish signals have also been coming from the expectation of the launch of the Pavio- ADA’s metaverse undertaking. 

Data Source: Tradingview.com 

Pavio is a Decentraland like virtual land with about 100000 land parcels. Each is a unique nonfungible token(NFT) with coordinates. In the past months, metaverse involvement in the crypto sector has been good inception. Now, Cardano’s involvement in it will boost ADA token’s price further.

There is the possibility of Cardano closing above its 100-day Exponential moving average resistance. This might shift on the upside target toward the 200-day Exponential Moving Average to about $2.

Contrarily, there might be a risk of the general crypto market crash due to the U.S Federal Reserves interfering programs that might break ADA’s bullish trend to some stretch.

According to Liam Bussel, CEO of Cardano-native DEX WingRiders, ADA is far from its prime opportunity of acquiring more scalability in the 2022 roadmap. this explains why many investors appear to be risking big on Cardano.

Bussel also adds that high-performance use cases indicate the world competitiveness ability. Cardano can keep up and lead and this might lead to ADA weekly closing above $1.85.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.