- Midnight (NIGHT) struggles as key support breakdown triggers sell-off.
- Despite privacy coin rally, Midnight continues its downward market journey.
- Midnight’s trading volume plunges, signaling investor retreat amid volatility.
Cardano’s Midnight (NIGHT) has diverged from the recent rally seen in the privacy coin sector, continuing its decline after experiencing volatility over the past week. According to CoinMarketCap data, the token suffered a significant drop of over 7% within a 24-hour period, extending its downward trajectory in the market.
Midnight’s downfall can be attributed to its failure to hold the $0.0836 support level, a key threshold that traders had closely monitored. The breakdown of this support sparked a sell-off, reinforcing the bearish sentiment surrounding the asset. As a result, many traders opted to exit their positions, leading to further downward pressure on its price. While other privacy coins, such as Zcash (ZEC), have maintained their bullish momentum, Midnight has underperformed, leaving investors concerned about its future.
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The asset’s price fell to $0.07107, marking a 5.71% decrease in the last 24 hours. The coin peaked at $0.07579 earlier in the day but struggled to maintain its upward momentum as market volatility intensified. This has also impacted Midnight’s trading volume, which plunged by 15.62% to $34.78 million during the same period. Investors have pulled back from the asset, likely due to the Relative Strength Index (RSI) nearing oversold territory at 34.49.
A Loss of Momentum: What’s Next for Midnight?
The decline of Midnight follows a nearly 50% volume crash in late December, which already signaled the weakening of bullish momentum. Despite this, the token had managed to keep its price steady, but the recent sell-off suggests a loss of confidence among investors. With Bitcoin’s dominance on the rise, many altcoins, including Midnight, have faced capital outflows as traders shift their focus to the leading cryptocurrency.
In light of these developments, early investors in Midnight have opted to take profits, fearing that the token may not recover. As the hype around the new Cardano fades, the project’s future looks uncertain. However, there is still hope for the asset, as the second phase of the project, the Kukolu upgrade, is expected to take place within the first quarter of the year. This upgrade could potentially reignite interest and support a price rebound, but for now, Midnight remains in a challenging position in the market.
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