The Midnight token (NIGHT), linked to the Cardano ecosystem, faces turbulence following a dramatic launch. Despite a significant correction in the last 24 hours, on-chain data reveals large wallets are seizing the opportunity to strengthen their holdings.
The launch of the Midnight (NIGHT) token has been marked by extreme volatility, characteristic of new projects with high potential. After hitting its post-launch lows, the token initiated a spectacular bullish rally, posting nearly 300% gains from its bottom. On a weekly timeframe, the momentum remains broadly positive, with gains of approximately 70% over the last seven days.
However, the situation changed dramatically over the past 24 hours. The market experienced a severe retracement, erasing a portion of recent gains. This type of movement, while violent, is not unusual following such a rapid phase of vertical expansion.
Profit-taking by short-term traders intensified selling pressure, triggering a temporary shift of technical indicators into bearish territory on very short timeframes, while leaving the underlying trend still open.
Despite the price drop visible on the charts, analysis of capital flows reveals a different market reading. Whales, often associated with Smart Money, don’t appear to be capitulating and are instead taking advantage of this dip to accumulate strategically.
This divergence between a declining price and sustained buying activity from large wallets frequently constitutes a strong technical signal. It suggests that the support zone is being actively defended and that the correction could remain limited once weak hands have been flushed from the market.
In the background, Midnight benefits from solid fundamentals as a privacy-focused sidechain of the Cardano ecosystem. If the price manages to stabilize at current levels thanks to whale action, a new breakout toward an ATH (All-Time High) remains conceivable, although caution is warranted until a clear trend reversal is confirmed.
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