Cardano’s first decentralized exchange launch boosts ADA price

Key Takeaways:

• Smart contract platform Cardano launched its first DEX on the testnet.
• Its in-house token ADA jumped 7% in response.

YEREVAN (Coinchapter.com) – Charles Hoskinson, the brains behind the blockchain platform Cardano, announced Monday the launch of the first-ever decentralized exchange (DEX) on their testnet. Traders picked the news as bullish for Cardano’s native token, ADA, which surged 7% in a day in response.

Hey everyone, I wish it was Sunday because that's my fun day, but I guess it's going to be a manic Monday! https://t.co/A4y3LQFM9I go get some ice cream kids https://t.co/5aDBvYrNzd

— Charles Hoskinson (@IOHK_Charles) December 6, 2021

Early bugs

Despite the high-profile launch, the Cardano team admitted that the SundaeSwap platform had bugs.

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!

read their tweet.

In the comment section of the announcement, various users complained about the difficulty of Yoroi, a light-client wallet for Cardano integration. The frequency of the complaint prompted one of the responders to post a tutorial video that would help the troubled users.

Also read: Cardano-hosted Nerds & Virgins project burns over 7K unsold NFTs.

Meanwhile, the official Twitter channel called the DEX the “sweetest exchange on Cardano” and urged the platform users to give it a try. The team also left a form to fill out in case the users encounter any “bugs, issues, or have recommendations.”

Additionally, Cardano announced a significant milestone, as the platform reached one million delegated Cardano wallets.

🎉🎉🎉1 MILLION delegated #Cardano wallets! #CardanoCommunity🙌🥳️ pic.twitter.com/FMlP1yHbmp

— Cardano Community (@Cardano) December 6, 2021

ADA jumped 7% in response to the announcement. However, the overall climate on the market remained quite grim, with red candles across Bitcoin and altcoin charts.

ADA daily chart

Cardano’s technicals did not look reassuring, despite the bulls’ successful 7% pump. In mid-November, the digital asset broke out of the bearish Descending Triangle formation and declined, compliant with the setup. The Triangle’s resistance trendline capped ADA’s bullish attempts and drove the price swing down.

As of publication, the asset held over a significant support bar at $1.42, while the ADA/USD exchange rate stood at $1.44. If ADA retests the support, it could source further assistance from the bar and try to reach its 20-day exponential moving average (EMA-20; blue wave on the chart above).

Also read: Cardano crashes over 15% as brokerage firm eToro limits ADA trading. 

The recent green candles gave the relative strength index (RSI) a boost as well. In addition, the momentum indicator rose from 30 to 40, which could signify growing confidence among traders.

Overall, Cardano’s charts remain dependent on the climate across the market.

For example, on Dec 2-4, when Bitcoin lost 15%, Cardano shed over 10$ off its value. Similarly, during “red” September 2021, Bitcoin declined by 23%, while ADA crashed by over 34%. The upcoming sessions will show if Cardano’s uptrend can hold up against the bearish market.