Midnight (NIGHT), the privacy-focused Layer 1 network within the Cardano ecosystem, is experiencing a notable price surge, outperforming major cryptocurrencies. At the time of writing, NIGHT was up 2.5% in the past 24 hours and a significant 18.1% over the past week. This contrasts with Bitcoin (BTC), which was down 1.85% daily and only up 0.3% weekly.
The rally follows a recent retracement where NIGHT's price fell 40% from $0.120 to $0.0718 in under three days just over a week ago. Since that low, the altcoin has rallied 34%. A key technical development was the flip of the $0.083 level from short-term resistance to support, establishing bullish conditions.
On-chain data reveals a nuanced picture. While the top 100 NIGHT holders have reduced their combined holdings by 14.5% over the past seven days (from 236 million to 202 million NIGHT), this is interpreted as calculated profit-taking rather than panic selling. Crucially, the buy-to-sell ratio shows buyers account for 52% of total transaction volume, indicating sustained demand outweighs supply.
Market sentiment received a boost from social visibility, with NIGHT taking the top spot on CoinGecko's trending token list, surpassing Bitcoin and Ethereum. Charles Hoskinson, co-founder of IOHK and Cardano, commented that Midnight was "just getting started," adding to the positive narrative.
Technically, analysts are eyeing key levels. The immediate target is the psychological resistance at $0.100. A confirmed breakout above this level could pave the way for a test of the previous all-time high near $0.120, requiring a 25.7% move. The Fibonacci extension level at $0.134 is identified as the next major price target if bullish momentum holds.
However, risks remain. Trading volume has decreased dramatically, and the Chaikin Money Flow (CMF) indicator struggles to breach the +0.05 level, signaling potential weakness in buying pressure. A liquidation cluster between $0.088 and $0.09 also suggests a price dip to those levels is possible. The primary downside risk is a break below the $0.075 support, which would invalidate the current bullish structure.
