Cardano (ADA) traded within striking distance of its three-week high at the start of this week, leading some investors to suggest that a trend reversal was in order. In reality, the bullish momentum is primarily connected to an anticipation of the upcoming decentralized exchange (DEX) called SundaeSwap.
ADA price rose by nearly 12% on Jan.17 to reach an intraday high of $1.60, a day after SundaeSwap announced the launch of its “fully-functional beta decentralized exchange (DEX).” Nonetheless, the upside swing also came as a part of a wider rebound trend wherein ADA jumped by almost 50% in just seven days.
ADA/USD daily price chart. Source: TradingView
In detail, ADA’s rebound began almost in sync with similar retracement moves across the cryptocurrency market. That included Bitcoin (BTC), which sharply reversed its trend on Jan. 10 after its price dipped to as low as $39,650. At press time, BTC price trades at $41,500.
ADA initially tailed the crypto market’s reversal, but later continued its upside momentum on its own after taking cues from the euphoria surrounding the SundaeSwap DEX launch on Jan. 20. As a result, ADA emerged as one of the best performers among the top-ten cryptocurrencies based on a 24-hour adjusted timeframe.
Top 10 cryptocurrencies in the past 48 hours. Source: Messari
What makes SundaeSwap bullish for ADA?
SundaeSwap’s official DEX launch announcement included evidence of greater demand for ADA tokens in the future and this is typically a bullish signal for investors.
The moment we’ve all been waiting for has finally come!
We’re excited and proud to share that SundaeSwap and the ISO will be launching on the evening of Thursday, January 20th (EST)!
Check out the article below! https://t.co/8oDYU6i3k9 pic.twitter.com/upgNZx2xH2
— SundaeSwap Labs (@SundaeSwap) January 15, 2022
The DEX platform also introduced its native SUNDAE token and discussed three ways to distribute it among users: via an initial stake offering (ISO) round, yield farming and direct exchange-based conversion.
Discussing the ISO round, SundaeSwap explained that it would distribute 5% of the total SUNDAE supply via five…
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