Cardano price remained on edge near its year-to-date low on Sunday, Dec. 21, even as the recently launched Midnight token continued its momentum.
Summary
- Cardano price has formed a falling wedge pattern on the daily chart.
- The token may rebound by ~40% from the current level.
- Cardano will benefit from the ongoing Midnight token boom.
Cardano (ADA) token was trading at $0.3680, a few points above this year’s low of $0.3476. It remains ~70% below its highest point this year, with its market capitalization falling from over $25 billion to $13 billion.
Cardano price could be on the verge of a strong bullish breakout as its fundamentals improve. One of the core catalysts is that Midnight (NIGHT), the recently launched Cardano Native Asset, is thriving.
The NIGHT token jumped to $0.082, up by 135% from its lowest level this month. Most importantly, this surge is happening in a high-volume environment, with the 24-hour figure crossing the $5 billion milestone for the first time.
Its 24-hour volume was the fourth largest in the crypto industry after Tether, Bitcoin, and Ethereum. It was also much higher than Cardano’s $307 million, and is a sign that there is robust demand among investors.
NIGHT’s performance is also notable because most newly launched tokens often crash as insiders dump. Also, their volumes tend to peak on the first few days and then plunge as the momentum wanes.
Midnight has gained traction as demand for privacy tokens gain steam. A closer look at the top forecasts for 2026 by top companies like Coinbase and Grayscale shows that it will be one of the main themes in the crypto industry. This also explains why the Zcash price has jumped this weekend.
Midnight’s success will help to boost Cardano’s ecosystem over time, solving one of the biggest challenges.
At the same time, Cardano is working on the Pentad proposal that will boost its ecosystem by introducing tier-1 stablecoins and oracle networks.
Cardano price technical analysis
The daily timeframe chart shows that the ADA price has dropped to $0.3680, down sharply from the September high of $1.017. It has formed a falling wedge pattern, which is made of two descending and converging trendlines.
The coin’s Relative Strength Index and the MACD indicators have formed a bullish divergence pattern. Therefore, the token may rebound to the key resistance level at $0.5147, its lowest point in April and June this year. This price is about 40% above the current level.
