Cardano (ADA) is trading very close to the key $1 level and could very well slide under it if the market sentiment worsens amid rising complaints by users against its very first DEX that went live, SundaeSwap. At the time of writing, ADA/USD is trading around $1.02.
SundaeSwap went live last week but has received considerable negative feedback so far as users complain about extreme delays in processing their transactions on the platform. Input Output – the firm behind the development of Cardano, later confirmed that this was on account of heavy network load due to the high level of anticipation and enthusiasm among the DEX’s users.
While the possibility of network congestion hitting Cardano after one dApp went live does not make the potential Ethereum killer is bad news for its brand in itself, a public spat between the teams behind SundaeSwap and another project CardStarter made matters worse. The dispute has seen leaders behind both dApps taking to social media to level accusations against one another, and things got heated up to such an extent that Cardano’s co-founder Charles Hoskinson had to step in and call them out on it.
On the positive side, however, the Cardano blockchain has been enjoying record levels of network activity in recent weeks on account of SundaeSwap’s launch. The total number of ADA wallets is closing in on the 3 million mark while the amount of tokens staked exceeds 23 billion – figures that lend some support to the crypto and keep it within the top 10 digital currencies by market cap.
Even though SundaeSwap is experiencing slow transaction processing capabilities at the moment, it has helped take Cardano’s TVL close to $75 million within a few days of its launch. This is an indicator of the potential of the network and the high level of expectations that users have from the blockchain which promises several real world use cases that can drive its value higher over the years.
ADA/USD Technical Analysis
Technical analysis of the H4 chart shows a strong bearish bias among moving averages and the momentum indicator. Although, the MACD indicates some interest in buying as well.
ADA/USD
Cardano’s price is well below the pivot point at $1.22 but is far from the immediate support at $0.81. Let’s wait and watch for price action around the $1 mark as a break below this can drive a sharp sell-off which could cause the support to be tested in the near term.
