The official launch of the 24 billion NIGHT tokens mint on the Cardano blockchain was expected to trigger a bullish rally. However, ADA saw a surprising 6.5% drop, raising crucial questions about Cardano's current ecosystem dynamics. With Midnight, the highly anticipated privacy-focused sidechain, reaching a significant milestone, why is there a disconnect between technical fundamentals and market sentiment?
The Midnight project has officially minted its entire maximum supply of 24 billion NIGHT tokens on the Cardano blockchain. This milestone marks the beginning of the distribution phase via airdrop and positions Midnight as one of the most promising sidechains in the ADA ecosystem. The zero-knowledge proof technology integrated into Midnight aims to offer advanced transaction confidentiality while maintaining compatibility with Cardano smart contracts.
Despite this positive technical announcement, the price of Cardano suffered a 6.5% correction. This decline comes amid increased volatility across the entire crypto market, but remains disproportionate compared to the concrete advances of the project. Trading volumes increased significantly at the time of the announcement, indicating marked interest from traders, but selling pressure clearly dominated.
This market reaction illustrates a recurring phenomenon in the crypto universe: “buy the rumor, sell the news”. Many investors had likely accumulated ADA positions in anticipation of the Midnight event, creating prior buying pressure. Once the official announcement was published, these same players took their profits, triggering a wave of liquidations that weighed on the price.
The technical analysis of Cardano highlights several key signals explaining the recent sharp correction. The breach of the psychological support at $0.80 triggered a cascade of automatic stop-losses, amplifying the decline. On-chain data confirms an increase in transfers to exchanges, indicating massive selling by large holders. Additionally, resistance between $0.90 and $0.95 halted the bullish momentum, while an overbought RSI already signaled an inevitable technical correction.
On the global front, Bitcoin weakness intensified pressure on altcoins, particularly on Cardano (ADA), which maintains a high correlation with BTC at 0.75. This unfavorable macroeconomic context has hindered any recovery, despite the technical advances of the Midnight project, now fully integrated into the Cardano ecosystem.
In the medium term, however, Midnight could serve as a catalyst for a sustainable rebound. Its approach based on zero-knowledge proofs brings a major asset in terms of privacy and smart contract compatibility. The upcoming NIGHT token airdrop should stimulate community engagement and strengthen demand for ADA. With a clear roadmap, regular updates and Charles Hoskinson’s vision, Cardano maintains solid fundamentals despite market volatility.
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