Cardano Deploys First DEX, Why ADA’ s Price Could Receive a Boost
Cardano (ADA) follows the general trend in the crypto market and recorded moderate losses in the past weeks. As of press time, ADA trades at $1,30 with 5.1% and 18.1% losses in the daily and weekly charts respectively.
ADA trends to the downside in the 4-hour chart. Source: ADAUSDT Tradingview
Cardano has been moving heavily to the downside in the past months due to rumors of potential regulatory dangers following an alleged de-listing from crypto exchange e-Toro. The rumors were denied by IOHK’s CEO Charles Hoskinson, but the market seems to have negatively reacted either way.
Related Reading | Cardano Project Flickto Surpasses 1.5 Million ADA Staked One Month After Launch
However, this network’s fundamentals continue to strengthen as it recently deployed its first decentralized exchange SundaeSwap on the Cardano testnet. This milestone was celebrated by Cardano’s community as the network implemented smart contract capabilities with three Hard Fork combinator events, part of its Alonzo era.
The team behind SundaeSwap celebrated the launch via its official Twitter handle and invited the Cardano community to use participate in the DEX’s testnet. In that way, the team can find and fix bugs related to the platform.
In order to participate, users need to complete a form. This process was already used to find a critical bug, as the team reported via Twitter:
Might have to rebrand to MondaeSwap… In all seriousness, we’ve found a bug with our scoopers renewing scooper licenses. We are cleaning that up, and as soon as it’s completed testnet will be live for use. Thank you for staying patient with us!
IOHK also celebrated the launch of SundaeSwap on the Cardano testnet calling it an opportunity to “learn a lot”. The company expects high levels of interest and participation and will it these factors as a way to “put the network under” stress to get data on its “parameter settings”. IOHK added:
(…) expect bugs in the DEX. The @sundaeswap team is encouraging you to find some. Remember this is early #DApp software, and it’s still early days for #DeFi on #Cardano. Testnets are a key part of iterating & improving the experience.
Cardano (ADA) Key Levels To Watch And Potential Bullish Case
Cardano has taken a unique approach to deploy its smart contract and DeFi capabilities. IOHK has expressed its intentions of introducing these features “gradually” to guarantee users’ security and a better experience than its competitors.
For this reason, ADA detractors claimed that the network might be taken too long to achieve this objective. However, IOHK reiterated the following:
(…) We’ve plenty of headroom for L1 growth. But we will take things slowly and carefully. And get things right. This is and will remain central to our approach.
The deployment of this first DEX adds to Cardano’s potential to resume its bullish momentum. As of press time, the cryptocurrency could see support at $1,25 and resistance at $1,40. Both these levels will be critical to determine ADA’s price destination in the short term.
Related Reading | Cardano (ADA) Set To Begin Trading On Bitstamp On Wednesday
ADA’s price (in blue) with its critical support levels (below price) and resistance (above price). Source: Material Indicators