Cardano price settles at a key level ahead of the Midnight launch: will it rebound?

Cardano price remains in a technical bear market and is hovering near its lowest level since November last year as traders wait for the upcoming launch of the Midnight mainnet and as more exchanges confirmed the NIGHT token listing.

Summary

• Cardano price has dropped to a crucial support level this month.
• The developers will launch the Midnight sidechain on Monday.
• OKX, Gate, and Bybit have confirmed that they will list the NIGHT token.

Cardano (ADA) token was trading at $0.4185, down sharply from the year-to-date high of $1.3202. It remains much lower than the all-time high of $3, lagging other top tokens like Chainlink and Ethereum.

Cardano will be in the spotlight as investors focus on the upcoming Midnight mainnet launch, which will happen on Monday. Midnight is a project that has been in development for the past few years, which will create more utility for Cardano.

The developers launched the NIGHT token last week, becoming the first Cardano Native Asset. This token will now be launched and become tradeable on Monday this week. Some top exchanges like Bybit, Gate, and OKX have all confirmed that they will list it.

The NIGHT airdrop will be important for Cardano as it will allow people who claimed it during the Glacier airdrop and the scavenger mine period to claim it. While some of these holders will sell them, others will likely sell them.

https://twitter.com/MidnightNtwrk/status/1997033735833731507

Cardano and the team, including Charles Hoskinson, hopes that Midnight will introduce more developers to the network and boost its total value locked. 

However, some analysts question Midnight’s benefit to the Cardano ecosystem as it will enable users to develop on Midnight and not Cardano itself. Also, some recently launched layer-2 and layer-1 networks have not been successful. For example, Plasma and other networks like Monad and Keeta have faded shortly after launch.

Cardano price technical analysis 

The weekly timeframe chart shows that the ADA token has been in a strong downward trend in the past few months, falling from the year-to-date high of $1.3202 to a low of $0.400.

Cardano token has moved below the important support level at $0.5113, its lowest level January, April, and June this year. It has now settled along the ascending trendline, which connects the lowest swings since June 2023, August last year, and December this year.

The token has moved below the 50-week and 100-week Exponential Moving Averages, while the Percentage Price Oscillator (PPO) have moved below the zero line.

Therefore, the token will likely continue falling if it moves below the ascending trendline. If this happens, the next key support level to watch being at $0.2760, its lowest level in August last year. A move above the resistance level at $0.5113 will invalidate the bearish outlook.