Midnight [NIGHT] was up 2.5% in the past 24 hours, at the time of writing, and up 18.1% for the week. It has outperformed Bitcoin [BTC], which was down 1.85% in a day and only up 0.3% over the past week.
Technical analysis showed that the uptrend was likely to continue. AMBCrypto investigated the immediate bullish targets and identified the points that could invalidate them.
Why is NIGHT’s price up?
A post on X observed that NIGHT took the top spot on CoinGecko’s trending token, surpassing the giants BTC and Ethereum [ETH]. Co-founder of IOHK and the Cardano [ADA] blockchain, Charles Hoskinson, commented that Midnight was “just getting started“.
Just over a week ago, NIGHT saw a 40% price retracement from $0.120 to $0.0718 in under three days. Since then, the altcoin has rallied 34%.
The $0.083, which had been a short-term resistance, was flipped to support and set up bullish short-term conditions.
Mapping NIGHT’s price targets
Source: NIGHT/USDT on TradingView
Based on the rally earlier this month, a set of Fibonacci retracement levels was plotted. The rally came after a few days of sideways trading, with a structure break (cyan) being a clue of NIGHT gains to come.
The retracement to the 78.6% level at $0.073 also saw a few days of sideways trading under $0.083. A structure break on the 27th of December was followed by a move past the $0.09 local resistance.
The vastly reduced trading volume saw the CMF struggle to breach the +0.05 level despite considerable recent gains. This was a worry for NIGHT bulls.
Is a bearish breakdown likely?
It is possible, since demand appeared to be relatively weak. This could also be a consequence of the cooling of the inflated trader interest NIGHT held recently. A Bitcoin pullback could affect the market sentiment and hurt NIGHT.
This scenario appeared unlikely compared to a bullish outcome.
Traders can buy after THIS level is breached
The H4 structure was bullish, and Bitcoin did not appear to be in immediate danger of dropping below $85k. The $0.1 psychological resistance level, if flipped to support, would offer a buying opportunity.
In this scenario, the Fibonacci extension level at $0.134 would be the next price target.
Source: CoinGlass
The liquidation map showed that a NIGHT price dip to $0.088-$0.09 was possible due to the cluster of high leverage long liquidations. Traders can use a dip to these levels to buy NIGHT as well.
Final Thoughts
- The market sentiment around Midnight, the privacy-focused Layer 1 network within the Cardano ecosystem, remains positive, as the recent price action shows.
- Though trading volume was down dramatically, it remains likely that NIGHT continues to trend higher in the coming days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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