Traders who have despaired of the ADA token’s performance over the past few weeks may have reason to smile again. Indeed, the first decentralized exchange powered by Cardano is set to launch a token sale to generate additional funding to drive the next phase of its growth.

AdaSwap will be the first decentralized exchange on the Cardano network. He plans to sell 80 million tokens at $ 0.005 each, as he aims to raise $ 400,000. Half of the allocated tokens will be released during the token generation event, while the rest will be released later.

One of the criticisms of the Cardano network has been the reliance on centralized networks to trade and exchange ADA tokens. AdaSwap will mark Cardano’s first foray into the world of decentralized exchanges (DEX). By creating a native gamified DEX for the Cardano blockchain, users will be able to buy, sell or trade ADA tokens and buy and sell artwork and other NFT products, earning interest on their staking activity. AdaSwap will also serve as a native market for non-fungible tokens (NFTs) as well as a high-yield liquidity pool.

The native token offered for sale in the IDO is the AdaSwap (ASW) token. ASW will be interchangeable with ADA and other Cardano-powered tokens with a near zero transaction fee status.

The sale will be held on the CardStarter IDO launch pad. This IDO sale may create additional demand for CardStarter’s native token (CARD).

How will this sale impact ADA price predictions?

ADA price prediction

Tuesday’s rebound indicates that ADA / USDT may have bottomed out at the 1.197 support level (June 26 / December 4 low). Further momentum on the demand side needs to come to boost the bullish ADA price forecast, with the bulls targeting the price discovery at 1.499 and 1.837. 1,600 may appear to be a pit stop, being the site of the May 24, June 15, and November 28 highs.

Only a drop below 1.197 invalidates these projections. This move opens the door to 1.019, the site of previous lows seen on April 25, May 19, June 22 and July 20.

Cardano: Daily Chart