Cardano Downtrend Deepens After Midnight NIGHT Launch — ADA Nears $0.405 Pivot
Cardano (ADA) has moved into a pronounced downtrend following the Midnight sidechain’s NIGHT token launch on December 8, 2025. ADA earlier rallied from about $0.37 to $0.484 but failed to clear $0.52 and subsequently reversed. The NIGHT token’s volatile debut — a sharp spike then an 80%+ plunge as airdrop recipients sold — amplified selling pressure on ADA. Over a recent three-day slide ADA fell from $0.482 to $0.409 (~15.5% loss) while open interest in ADA futures declined roughly $152M (from $846.5M to $694.2M per CoinGlass), indicating deleveraging or liquidations and reduced speculative demand. On-chain metrics show rising circulating ADA supply and capital outflows (CMF < -0.05). Technicals on the daily chart show a V-top reversal below the 20-day EMA, lower highs and lower lows, and bearish conviction backed by rising volume; the immediate pivot is $0.405 — a daily close below this level would likely accelerate downside toward $0.37 and the longer-term ascending support near $0.34. Liquidity is sparse between $0.40–$0.50, and clustered short liquidations above $0.48 may create re-test volatility. Bitcoin volatility has also increased selling pressure, hampering recoveries. Key trading considerations: monitor price at $0.405, open interest, volume, CMF and DMI for directional confirmation, and nearby liquidity pockets; use tight risk management given elevated volatility and outflows.
Bearish
The combined evidence from both summaries points to a bearish outlook for ADA. Short-term indicators and market data show clear downside pressure: a sharp multi-day price decline (~15.5%), a large drop in futures open interest (~$152M) indicating deleveraging or liquidations, rising circulating supply, CMF below -0.05 (capital outflow), and daily chart structure marked by a V-top reversal, lower highs/lows and rising volume on sell-offs. The NIGHT token’s explosive and then collapsing debut directly increased selling pressure as airdrop recipients dumped holdings. Liquidity gaps between $0.40–$0.50 and clustered short squeezes above $0.48 create volatile replay risks but do not negate the bearish structure. Bitcoin volatility adding to downside risk further reduces the chance of a sustained rebound. Near term, a daily close below the $0.405 pivot would likely accelerate moves toward $0.37 and potentially test the longer-term support near $0.34; if $0.405 holds, expect consolidation rather than a decisive bullish reversal. For traders, the setup favors downside-oriented positioning or avoidance of long exposure until on-chain flows, open interest and momentum indicators show stabilization.