The price of Cardano (ADA) is currently attracting the attention of technical analysts as bullish divergence signals appear on larger timeframe charts. This momentum coincides with the explosion of Midnight (NIGHT) – a new security token in the Cardano ecosystem.
Below is a detailed analysis of this relationship:
1. Bullish Divergence signal of ADA:
In December 2025, while the price of ADA experiences some retests of the lower support zone (around $0.37 - $0.39), technical indicators show underlying strength:
RSI indicator: While the price forms lower lows or equals the previous low, the RSI indicator forms higher lows. This reflects that selling pressure is weakening and buyers are accumulating strongly.
MACD: Light green histogram bars begin to appear, indicating that the downward momentum is being neutralized.
Expectation: If this divergence is confirmed by a daily candle closing above the resistance area of $0.45, ADA could trigger a bullish rally towards the target of $0.77 by the end of the year.
2. The Token NIGHT craze: The driving force behind the ecosystem:
NIGHT is the native token of the Midnight network, a sidechain focused on privacy developed by IOG (led by Charles Hoskinson). The launch of NIGHT in early December 2025 created a significant impact:
Surging demand: Right after being listed on major exchanges like Binance, Bybit, and KuCoin, NIGHT grew by more than 188%, reaching a market cap of over $1 billion in just a few days.
Record trading volume: On Cardano's decentralized exchanges (DEX), the trading volume of the NIGHT/ADA pair surpassed 85 million ADA in just 5 days, leading to an increase in on-chain activity of the parent network.
ZK (Zero-Knowledge) Technology: NIGHT is not only a speculative token but also highly applicable in securing business data, something that the market in 2025 is extremely eager for.
3. Why does the demand for NIGHT help ADA's price?
The success of satellite projects like Midnight directly impacts the value of Cardano:
Increasing utility for ADA: Users need ADA to pay transaction fees and interact with smart contracts when minting or swapping NIGHT on the Cardano network.
Attracting capital: The explosion of NIGHT attracts new investors into the Cardano ecosystem, indirectly driving the demand to hold ADA to participate in programs like Glacier Drop (Midnight's airdrop).
Confidence returns: The successful deployment of Midnight after many years of waiting has dispelled doubts about Cardano's scalability, creating a positive sentiment for "whales."
> Note: Despite the bullish divergence signal, investors need to be cautious of short-term corrections of NIGHT (which often drop sharply after debut peaks) as this can create cross-selling pressure on ADA.
The content is informational and analytical, not investment strategy advice.
