Cardano’s Midnight (NIGHT) has decoupled from the privacy coin rally after one week of steady decline triggered by volatility. CoinMarketCap data reveals that the “new Cardano” fell by over 7% in the last 24 hours to extend its downward journey in the crypto market.
Midnight’s key support breakdown triggers sell-off
Notably, Midnight broke below the $0.0836 price support, which many traders interpreted as a signal to exit their position. This signaled weakening bullish momentum on the market and further forced a downward journey on the new Cardano.
Hence, while other privacy coins like Zcash (ZEC) are on a steady climb as the rally in the sector continues, NIGHT has decoupled and left investors bleeding. Midnight has cut short the bullish anticipation of traders that NIGHT will continue on an upward trajectory.
As of press time, Midnight exchanged hands at $0.07107, which represents a 5.71% decline in the last 24 hours. The privacy coin dropped from a daily peak of $0.07579 to its current level as volatility deepened.
This has also impacted Midnight’s trading volume, as investors have paused their engagement with the asset. NIGHT’s volume has plunged by 15.62% to $34.78 million within the same time frame.
It is also likely that the reduced interest from investors is because the asset’s Relative Strength Index (RSI) at 34.49 is close to oversold territory.
Midnight signaled the loss of bullish momentum when it suffered a nearly 50% volume crash toward the final days of December. However, at the time, its price remained intact and stayed up. Now, Midnight has succumbed to market pressures and is underperforming the privacy coin sector.
Additionally, has Bitcoin’s dominance climbed to 58.42%, while altcoins fell. This development meant capital outflow from smaller assets like the new Cardano to the leading digital asset.
Amid this lingering volatility, Midnight’s early buyers are selling off a substantial part of their investment in a profit-taking move. It might be a way to prevent huge losses should NIGHT fail to recover, given that the hype around the new Cardano is losing momentum.
Can new Cardano rebound?
Many investors betting on Cardano’s Midnight had looked forward to a strong 2026, given that the asset entered into the elite list of the top 100 best performers in the crypto industry.
At the time, NIGHT was only rivaled by Zcash, as ZEC had a 13.8% price surge, which pushed it ahead of others.
Midnight holders might have to wait for the second level of the project, known as the Kukolu phase, in this first quarter. The upgrade might help rekindle adoption and support a price rebound.
