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Cardano (ADA) is experiencing a significant challenge despite its strong bullish momentum since March 21st. The cryptocurrency’s price is stalled at a local resistance level of $0.385, which has proven to be a significant barrier for ADA in its price movement.
ADA is trading at $0.3704, recording a decline of over 3.5% in the past 24 hours. The key resistance level of $0.385 is the next target for ADA, with strong buying pressure preventing its price from slipping to its nearest support floor at $0.3254.
Will Cardano’s Developments Keep Uptrend Going?
According to Sebastien Guillemot, CTO and co-founder of DcSpark, a product-based blockchain company that builds products and solutions for crypto projects, Cardano is set to become one of the top Ethereum Virtual Machine (EVM) chains next month, which could boost ADA’s price and allow the cryptocurrency breach new yearly highs.
Guillemot claims this is due to the launch of Milkomeda, Cardano’s EVM layer, allowing every Cardano user to operate EVM contracts directly from any wallet, everything in ADA. This could be a significant development for Cardano, as it will instantly make it one of the largest EVM chains regarding user count.
By integrating the EVM into Cardano’s infrastructure, developers can create and deploy their Ethereum-based decentralized applications (dApps) and smart contracts on the network.
Cardano’s users can also access a wider range of decentralized applications and smart contracts, increasing the platform’s utility and “attractiveness.” Moreover, using EVM contracts directly from any Cardano wallet in pure ADA will simplify the user experience, making it easier for users to interact with Cardano’s network.
In addition, According to Guillemot, Milkomeda will enable staking rewards for all EVM users, including smart contract developers, allowing them to earn rewards for staking their tokens on the network.
Will Cardano Be Able To Climb Higher?
One factor that could contribute to a potential price increase is the expanded utility of Cardano. By integrating the EVM, Cardano increases its platform’s range of use cases, making it more attractive to developers and users. This increased utility could lead to greater adoption of Cardano, increasing the demand for ADA and potentially boosting its price.
Moreover, another factor that may contribute to a potential price increase is the incentivization of participating through staking rewards. This development may incentivize users to hold and use ADA on Cardano’s network, contributing to its bullish momentum
The launch of Milkomeda and the integration of the EVM into Cardano’s infrastructure represents a major milestone for the platform and the broader blockchain ecosystem. This development is expected to increase trust in the project among its users and investors and potentially contribute to the bullish momentum of ADA’s price.
Furthermore, according to a recent Twitter post by the crypto analytics platform Santiment Feed, Cardano has been showing signs of “mild decoupling” from the broader cryptocurrency market this week, meaning that its price movement is not necessarily following the pattern of the largest cryptos in the market.
In the past few days, Cardano’s price has increased by over 8%, a significant gain in a relatively short time. This can be attributed to positive market sentiment and increased demand for the token.
Another notable trend in Cardano’s ecosystem is the accumulation of ADA by addresses holding 10,000 or more coins, according to Santiment. Over the past five months, these addresses have accumulated 1 billion ADA, equivalent to 3.3% more coins.
This suggests that large investors are bullish on Cardano’s prospects and are accumulating ADA in anticipation of future price increases.
Featured image from Unsplash, chart from TradingView.com