**Cardano** shows a cup and handle pattern on the 4-hour chart, and if the pattern's validity is confirmed, the token could rise to around $0.51. However, it dropped 6% on Thursday to $0.3969, complicating the technical setup, and traders are watching whether it will break above $0.423.
What happened: ADA forms a bullish pattern
Market analysts noted that this pattern is being captured, and $0.423 is the handle range that must be broken to confirm the pattern formation.
The token tested the $0.42 level twice on January 14 but failed to hold support and returned to the $0.40 support area.
The movement of ADA closely follows that of **Bitcoin**, and while Bitcoin briefly recovered to $97,000, Cardano also touched $0.45.
Altcoins gained additional momentum thanks to the privacy-focused sidechain Midnight introduced by Charles Hoskinson a few months ago. The native token of Midnight, **NIGHT**, surged by 200%.
Read more: Ethereum Holds $3,280 Level As Momentum Indicators Flash Warning Signs
Why it matters: The combination of privacy and regulation
Midnight occupies a unique position in the privacy coin sector. Unlike **Monero** and **Zcash**, this sidechain complies with regulatory requirements while protecting sensitive user data.
This hybrid approach is attracting the attention of both individual and institutional investors.
**NIGHT** is currently ranked 101st by market capitalization, slightly exceeding $1 billion. The main token of Cardano is positioned within the top 10 by market cap. Coinbase recently listed NIGHT perpetual futures, and Thursday's NIGHT trading volume reached $33.5 million, compared to ADA's main chain volume of $727.55 million.
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