Can Cardano Maintain Its Rally? Cardano goes ‘full send’ with 50%
The crypto market is once again painted in red, and Bitcoin’s price is no less than a suspense thriller movie these days, with the commodity plunging hard below $41,000 whenever a breakthrough above $43,000 is near.
Despite a world-record-breaking token burn, the price of ETH has yet to rise. With recent outperformers like Cardano reversing the excellent trend, it’s as if traversing a deep sea. The ADA price might either skyrocket or plummet into a deep chasm.
ADA bulls have pushed the price for the upcoming SundaeSwap DEX launch builds.
At the start of this week, Cardano (ADA) was trading within striking range of its three-week high, prompting some investors to predict a trend reversal. In truth, the bullish trend stems mostly from the expectation of the planned SundaeSwap decentralised exchange (DEX).
A day after SundaeSwap announced the debut of its “fully-functional beta decentralised exchange (DEX),” the ADA price climbed about 12% to an intraday high of $1.60 on Jan.17. Nonetheless, the upward movement was part of a larger comeback trend in which ADA gained nearly 50% in just seven days.
After taking cues from the euphoria around the SundaeSwap DEX launch on Jan. 20, ADA initially trailed the crypto market’s reversal, but eventually resumed its upward momentum on its own. As a result, on a 24-hour adjusted period, ADA was one of the strongest performers among the top ten cryptocurrencies.
What gives SundaeSwap such hope for ADA?
SundaeSwap’s official DEX launch announcement included indications of growing demand for ADA tokens in the future, which is often a bullish indication for investors.
The DEX platform also provided three options for consumers to get their hands on its native SUNDAE token: an initial stake offering (ISO), yield farming, and direct exchange-based conversion.
During the ISO round, SundaeSwap said it would share 5% of the total SUNDAE supply over five epochs. At the end of each epoch, a five-day reward cycle, users delegate their ADA tokens to a stake pool.
Can ADA Price continue it’s rally?
A number of reasons, according to crypto researcher Benjamin Cowen, could prohibit Cardano (ADA) from launching a bull run right now.
Cowen informs his 692,000 YouTube viewers that Bitcoin (BTC) is the “number one” limiting factor that could prevent ADA’s price from rising higher in a new video.
According to the analyst, Bitcoin governs the market’s health, and if Bitcoin’s values remain gloomy, it will be difficult for ADA to entirely break that trend.
The price of ADA jumped from $1.19 a week ago to $1.61 on Tuesday, though it has since dropped to $1.43 at the time of writing.
The “bull market support band” of ADA, according to Cowen, ranges from $1.64 to $1.81. The bull market support band is a technical indicator that combines the 20-week SMA with the 21-week exponential moving average (EMA).
According to the analyst,
“That [$1.81] can be viewed as some short-term barrier.”
Platform for smart contracts Cardano is working on a number of projects for 2022. Input Output Hong Kong (IOHK) recently announced intentions to extend the network this year, including the use of sidechains, which are secondary blockchains connected to the main chain and allow for asset transfers between them.
According to IOHK CEO Charles Hoskinson, Cardano’s technological elements will be able to compete with those of other leading smart contract platforms. Hoskinson has highlighted a number of advancements that he claims will be completed this year.
Traders, on the other hand, should keep track of how successful these planned enhancements are, according to Cowen.
