Midnight, Hyperliquid and Monero Show On-Chain Signs of Strength Amid Bear Market
Midnight (NIGHT), Hyperliquid (HYPE) and Monero (XMR) are drawing investor attention despite a broadly bearish crypto market. Midnight is advancing its roadmap toward a Q1 2026 “Kūkolu” phase focused on activating a secure mainnet, validators and enhanced privacy apps; on-chain indicators such as Chaikin Money Flow (CMF) point to reduced outflows. Hyperliquid’s decentralized derivatives platform has seen rising open interest and CMF above zero, signaling growing capital inflows and a rapid increase in open position sizes; its price shows low correlation with Bitcoin, suggesting independent momentum. Monero, after an ~30% correction over 11 days, shows declining selling pressure per the Money Flow Index (MFI); sustained demand is attributed to its privacy features and use-case-driven, non-speculative transactions. Analysts describe a market divergence where capital shifts toward projects with clear roadmaps, performance metrics and strong narratives — a “flight to quality.” For traders, these developments highlight potential short-term setups driven by improving inflows and decreasing selling pressure, while longer-term interest may persist for projects with tangible utility and privacy features. This is not investment advice; cryptocurrencies remain highly volatile.
Bullish
The article highlights improving on-chain metrics and product progress for three specific projects, which tends to support price strength relative to a weak broader market. Key bullish signals: CMF rising for Midnight and Hyperliquid (indicating capital inflow), growing open interest on Hyperliquid’s DEX (suggesting trader confidence and liquidity), and a falling MFI-driven selling pressure for Monero (reducing downward momentum). Low correlation of HYPE with BTC implies potential idiosyncratic rallies independent of Bitcoin moves. Historically, projects that show clear roadmap milestones and rising on-chain liquidity (e.g., exchanges or layer upgrades) can see outsized short-term gains even during broader market bear phases as capital rotates into perceived quality or yield opportunities. Short-term impact: increased volatility and upside in the mentioned tokens as traders chase momentum and event-driven trades; watch for spikes in volume and open interest. Medium/long-term impact: sustained price support if roadmaps are delivered and user/TVL metrics grow; otherwise, gains may be muted if broader market risk appetite returns to risk-off. Risks: headline-driven moves, leverage-driven liquidations on derivative platforms, and regulatory scrutiny (especially for privacy coins like XMR). Traders should monitor CMF/MFI, open interest, volume, correlation to BTC, and roadmap milestones to time entries and manage risk.