NIGHT tumbles as long liquidations spike and retail sells
Midnight [NIGHT] is down ~16% in 24 hours, extending its two-day drawdown to over 21%, amid broad crypto weakness near a ~$2T market-cap floor.
Key driver: a liquidation wave. CoinGlass data shows long traders are capitulating—long liquidations are 109x larger than shorts. In 24 hours, about $74K of long positions were closed versus only ~$678 of shorts. Over three days, longs worth more than $170K were wiped out, while liquidated sell orders totaled roughly $4K.
Technical damage: NIGHT lost slanting trendline support after a double-bottom formed around $0.03. Sellers swept buy-side liquidity near $0.03882, the breakout is described as “fake,” and the price then crashed by 21%+.
Market signals and flows: Top Traders Long/Short Ratio on Binance fell from 2 to 1.29 (large holders selling). Chaikin Money Flow (CMF) dropped from 0.21 to -0.33, signaling capital outflow.
Wallet behavior is mixed: retailers sold about 550K ADA worth of NIGHT, while larger holders (dolphins/sharks/whales) bought ~2.232M ADA worth. On-chain holders increased (crossing 75K; +1,000 in a week), suggesting the selloff may be short-term, but it hinges on bulls defending $0.03188 and the $0.03 base level.
Traders should watch whether NIGHT can reclaim and hold $0.03188 after the liquidation-driven break of support.
Bearish
The article’s immediate signal is price control by sellers: NIGHT broke key trendline support and the move is reinforced by a liquidation wave dominated by long positions (long liquidations 109x shorts). This combination—support break plus long capitulation—often leads to “flush-and-restore” attempts, but typically keeps downside risk elevated in the short term until buyers reclaim the broken levels.
On-chain behavior is mixed: retailers are selling while larger wallets accumulate. That can cushion rebounds, but it does not negate that retail-driven selling and broader capital outflow (CMF turning negative) are currently pressuring price. Similar past liquidation-driven breakdowns often see volatility spike first (forced liquidations), then either a quick stabilization if key supports hold, or a second leg lower if those levels fail on retests.
Given the article highlights $0.03188 as the key defense and $0.03 as the prior base, the near-term bias remains bearish unless NIGHT reclaims support quickly. Medium/longer-term outlook is more neutral-to-slightly positive if whale accumulation continues and the market structure starts rebuilding after the liquidation shock.