Cardano's privacy protocol token, Midnight (NIGHT), has recently experienced a significant price reversal, causing concern among investors. After a period of impressive gains, the asset is now struggling to maintain momentum, raising doubts about its ability to reclaim previous highs and continue its bullish run.
A Sharp Reversal and Profit-Taking
Midnight's price has taken a sharp downturn, plummeting approximately 8% within 24 hours, starkly contrasting its prior 18% weekly surge. This decline is largely attributed to profit-taking, as the Relative Strength Index (RSI) reached 67, signaling overbought conditions. Traders capitalized on the recent rally, especially after the price faced rejection at the $0.09 mark. The heavy selling pressure has also impacted market liquidity, with trading volume dipping by 18.53% to $94.68 million, which further contributes to increased volatility. Market watchers are closely monitoring the $0.085 support level, as a breach could trigger further losses, potentially driving the price down to between $0.075 and $0.08.
Fading Hype and Future Outlook
The current scenario marks a dramatic shift for NIGHT, which had seen 95.14% of its value wiped out in just 21 days from a daily high of $0.1015. This stands in stark contrast to its all-time high of $1.81 in December 2025, when investor anticipation was at its peak. Initially, Midnight gained significant traction amidst broader "privacy hype" in the cryptocurrency market, with its price surging dramatically compared to the general market. Despite achieving notable milestones and enjoying considerable adoption early on, the asset now appears to have lost its driving momentum. While Midnight's impressive performance shortly after its launch propelled it into the top hundred crypto assets, the likelihood of it reclaiming its earlier price levels has significantly dimmed as the initial market excitement fades.
