The cryptocurrency market recently witnessed the anticipated launch of Midnight's native NIGHT token, an event many hoped would ignite a rally for Cardano (ADA) amidst existing holder losses. While the initial reaction did spark a notable price surge, ADA's journey quickly met resistance, prompting a re-evaluation of its immediate future.
Cardano's Stalled Rally and Bearish Signals
Following a week-long rally that saw ADA climb over 30% from $0.37 to $0.484 around the Midnight token's debut, the bullish momentum proved short-lived. Cardano's price failed to sustain above $0.48 and notably could not reclaim the crucial $0.52 long-term resistance level, signaling a lack of enduring buying pressure. Technical indicators painted a clear picture of an impending downtrend; the Chaikin Money Flow (CMF) plummeted below -0.05, confirming significant capital outflows and rising selling pressure. Furthermore, daily charts showed the critical swing low at $0.405 under severe threat, with a daily close below this point expected to solidify a bearish structural shift and potentially lead to further declines towards the $0.37 support.
Conflicting Outlooks and Key Levels for Traders
Despite the strong bearish signals, a glimmer of bullish hope emerged from the 1-month Liquidation Heatmap, which indicated a build-up of short liquidations above the $0.48 mark—a "magnetic zone" that could potentially pull prices higher. However, the overall sentiment remained cautious, with analysts pointing to the rally's failure to extend beyond $0.48 as a testament to weak buying conviction. For traders, the immediate focus is on the $0.405 support level; a decisive break below it, followed by a retest as resistance, could present a clear selling opportunity. Conversely, if ADA successfully defends $0.405 and climbs back above $0.43, a degree of cautious optimism might return for bulls, though the unpredictable nature of Bitcoin's volatility remains a significant factor that could sway Cardano's trajectory in either direction.
