Cardano (ADA/USD) has attempted a bull run that has since failed due to the ongoing recession across the cryptocurrency market. ADA started the week on a notable bullish rally that coincided with a rebound in the broader cryptocurrency market.
At the beginning of the week, the bullish gains made by ADA had many investors speculating that the token could be reversing the bearish trend set during the past weeks.
Cardano’s rally fails
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
On January 17, DA made a rally of nearly 12% towards a three-week high of $1.60. ADA’s weekly gains almost reached 50% at this price, which showed a major price rebound. During the same week, Bitcoin (BTC/USD) and Ethereum (ETH/USD) also attempted a rally.
However, the token has failed to sustain these gains and has retreated to lower levels. At the time of writing, ADA was trading at $1.37, according to CoinGecko, after a double-digit dip during the past 24 hours.
The dip in ADA’s prices has come as the rest of the market also registered dips. During the past 24 hours, the total crypto market capitalization has dropped by almost 4%. Bitcoin and Ether have also dropped by around 2.01% and 4.30%, respectively.
SundaeSwap DEX launching on Cardano
The rally made by ADA at the beginning of the week comes amidst SundaeSwap’s announcement of launching a “fully functional beta decentralized exchange (DEX)” on Cardano. The DEX is expected to launch on January 20, resulting in increased interest in ADA.
SundaeSwap is among the pioneer projects launched on Cardano’s smart contract. The launch is a bullish signal for Cardano in the present and the future because it could contribute towards major bullish gains.
The SundaeSwap DEX will also be launched together with the SUNDAE token. The platform has noted that this token will be distributed to users in three ways: an initial stake offering (ISO), yield farming, and exchange-based conversion.
The announcement regarding this DEX launch stated, “If you want to make sure you qualify for all five ISO reward rounds, you must have ADA staked with eligible SPOs (Stake Pool Operators) before 21:45 UTC on January 25.” The platform added that the rewards would be distributed based on the snapshots taken at the time.
67% of retail CFD accounts lose money