Cardano Price Enters Its ‘Midnight Phase’: Beginning of a New 39% Dip?
Despite a recent 8.6% price increase linked to the Midnight subchain launch, Cardano faces potential downside due to a bearish flag pattern and whale selling.Summary
Cardano's price is currently experiencing a temporary bounce, up 8.6% amid excitement for its privacy-focused subchain, Midnight. However, technical analysis suggests this 'midnight phase' may signal a continuation of the downtrend rather than a new beginning. The daily chart shows ADA trading within a bear flag pattern, reinforced by a hidden bearish divergence on the RSI, indicating weak momentum. If the lower trendline of this flag breaks below $0.42, a projected 39% drop toward $0.25 could occur.
On-chain data supports this bearish outlook: large Cardano whales have sharply reduced their holdings since December 8th, and the volume of spent coins has jumped by about 37% in four days, suggesting traders are using the recent bounce to sell into strength rather than accumulate.
Key price levels dictate the next move: a fall below $0.42 targets $0.37 and potentially $0.25. Conversely, bulls need ADA to reclaim $0.55 with a daily close to invalidate the bearish setup and signal a constructive recovery.
(Source：BeInCrypto)