Cardano (ADA) Price: Will Midnight Launch on Monday Extend the Rally?

TLDR

• Cardano (ADA) is trading at $0.4185, down from its year-to-date high of $1.3202, and is approaching a key support trendline that has held since June 2023.
• The Midnight sidechain mainnet launches Monday with its NIGHT token, which has been confirmed for listing on major exchanges including Bybit, Gate, and OKX.
• ADA has formed an inverse head-and-shoulders pattern with a neckline at $0.45, potentially targeting $0.49 and $0.52 if it breaks above this level.
• The token has dropped below the 50-week and 100-week Exponential Moving Averages and sits at its lowest level since November 2024.
• Technical analysts identify a resistance zone at $0.475 to $0.485 that has rejected price multiple times, making this a critical breakout level for determining future direction.

Cardano is trading at $0.4185 as traders prepare for the Monday launch of the Midnight sidechain mainnet. The token has declined sharply from its year-to-date high of $1.3202 and remains well below its all-time high of $3.

The price has dropped to a level not seen since November 2024. ADA is currently testing an ascending trendline that connects the lowest points since June 2023.

The Midnight project has been in development for several years and aims to create additional utility for the Cardano network. The NIGHT token launched last week as the first Cardano Native Asset. Trading for NIGHT begins on Monday when the mainnet goes live.

Major exchanges have confirmed they will list the NIGHT token. Bybit, Gate, and OKX have all announced support for the new asset. This marks a key moment for the Cardano ecosystem as it expands its offerings.

The NIGHT airdrop will allow users who participated in the Glacier airdrop and scavenger mine period to claim their tokens. The distribution could lead to selling pressure as some holders choose to liquidate their positions. Other holders may decide to keep their tokens.

The Midnight launch represents an attempt to attract more developers to the Cardano ecosystem. The team hopes the sidechain will boost the network’s total value locked. Charles Hoskinson and other team members have promoted Midnight as a way to expand Cardano’s capabilities.

Technical Resistance Creates Uncertainty

Some analysts have raised questions about Midnight’s impact on the core Cardano network. The sidechain allows developers to build on Midnight itself rather than directly on Cardano. This structure differs from some other scaling solutions.

Recent layer-2 and layer-1 network launches have produced mixed results. Projects like Plasma and networks such as Monad and Keeta saw limited success after their initial releases. This pattern creates uncertainty about Midnight’s long-term adoption.

The weekly chart shows ADA has been in a downward trend for several months. The token has moved below the key support level at $0.5113, which marked lows in January, April, and June 2024.

Technical indicators show bearish conditions. The token trades below both the 50-week and 100-week Exponential Moving Averages. The Percentage Price Oscillator has moved below the zero line.

Pattern Formation Suggests Potential Reversal

Analysts have identified an inverse head-and-shoulders pattern on the ADA chart. The neckline sits around $0.45. A break above this level could push the price toward $0.49 and $0.52.

The token is currently grinding toward a resistance zone at $0.475 to $0.485. This area has rejected price advances multiple times in recent weeks. A successful break through this zone would signal a structural shift.

Crypto analyst Crypto Yoda noted that Cardano is respecting its ascending trendline with a series of higher lows. This pattern is an early signal of potential trend recovery. Price action around the current resistance will determine if this recovery can continue.

If ADA fails to break above the resistance zone, the next support level sits at $0.2760. This was the lowest point in August 2024. A move to this level would represent a further decline of approximately 34% from current prices.

Long-term charts suggest ADA may be forming a multi-year falling wedge pattern. Some analysts project potential recovery targets between $0.80 and $1.30 for 2026 if this pattern completes. Higher estimates reach toward the previous all-time high near $3.09.

The current price action places Cardano between rising trendline support and strong overhead resistance. The Midnight mainnet launch on Monday will provide the next catalyst for price movement.

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