Cardano price rallies 25% within a week in response to launch of EVM compatible layer 2
- Cardano price could post double-digit gains over the past week as the community awaits updates in the altcoin’s ecosystem.
- Milkomeda C1 mainnet, an Ethereum Virtual Machine compatible layer two is set to launch on the Cardano network on March 28.
- Analysts are bullish on Cardano price, predicting a continuation of the altcoin’s uptrend.
Cardano price started a massive uptrend, posting 25% gains within a week. Analysts are bullish on the altcoin ahead of the Milkomeda launch.
Cardano price on track to post double-digit gains
Cardano price could continue its uptrend as the community prepares for Milkomeda C1 mainnet. Proponents believe Cardano could hit a significant interoperability milestone with Ethereum, as Milkomeda goes live on March 28.
Milkomeda is compatible with the Ethereum Virtual Machine (EVM), making it a gateway to the ETH ecosystem. Though proponents have criticized the lack of decentralized applications on the Cardano network, with Milkomeda launch, layer two could boost the altcoin’s growth significantly.
In late February 2022, Milkomeda launched a testnet bridge between Cardano and the Ethereum network. The layer two protocol had collaborated with Nomad, an interoperability project to build the bridge that is now set to go live on Cardano.
Once Milkomeda goes live on the mainnet, investors would be able to send assets back and forth between the two blockchains.
Analysts have evaluated the Cardano price trend and predicted a rally in the altcoin. @AltcoinSherpa, a pseudonymous crypto analyst, has set a minimum price target of $1.25 for Cardano as the altcoin continues its uptrend.
$ADA: I think that 1.25ish comes at a minimum. Could be pullback there and would target higher for shorts. pic.twitter.com/0gIgBeQ4AH
— Altcoin Sherpa (@AltcoinSherpa) March 26, 2022
Analysts argue $1.12 is the key resistance for Cardano price; the altcoin retested the level on its climb. FXStreet analysts believe Cardano price could pull back to $1; this would provide a buy opportunity to investors. Analysts remain bullish on Cardano in the long term.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
