Key Insights:
Cardano price maintains support near its year-low as trading sentiment steadies following sharp year-to-date declines.
Midnight token's 135% surge and $5B volume boost Cardano's visibility and highlight rising demand for privacy assets.
A bullish chart pattern suggests ADA may recover 40% if key resistance at $0.5147 is tested successfully.
Cardano (ADA) hovered at $0.3680 on Sunday, maintaining a slight margin above its year-to-date low of $0.3476. The cryptocurrency has seen a notable decline from its peak in 2025, dropping nearly 70%. Its market capitalization currently stands at $13 billion, down from over $25 billion earlier this year.
The momentum behind Cardano is being partly fueled by the recent success of Midnight (NIGHT), a privacy-focused token native to the Cardano blockchain. The NIGHT token has surged by 135% this month, reaching $0.082. Its 24-hour trading volume soared past $5 billion, marking the fourth-highest in the market, trailing only Tether, Bitcoin, and Ethereum. This trading activity significantly exceeded Cardano’s own daily volume of $307 million, indicating strong investor interest.
Unusual Strength for a New Token
Unlike typical new tokens that experience rapid declines after launch, NIGHT has defied trends by sustaining momentum. Its performance stands out as most newly issued tokens tend to drop sharply as early investors exit and initial trading volume fades. The sustained interest in NIGHT reflects growing enthusiasm around privacy-focused digital assets.
Source: TradingView
Privacy tokens are increasingly gaining attention as a potential growth area in the crypto sector. Forecasts from industry leaders such as Coinbase and Grayscale highlight privacy as a key theme by 2026. This sentiment was also evident over the weekend with gains in other privacy assets like Zcash.
Technical Setup Points to a Rebound
On the technical front, Cardano has formed a falling wedge pattern, typically viewed as a bullish signal. Indicators including the Relative Strength Index and MACD are showing signs of bullish divergence. Analysts expect a potential rebound of up to 40%, with resistance projected near $0.5147. This level aligns with previous support zones recorded in April and June.
In parallel, Cardano is working on strategic developments under its Pentad proposal. This initiative aims to strengthen the network by introducing tier-1 stablecoins and building decentralized oracle networks. These additions are expected to enhance utility and adoption across its ecosystem.
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