Cardano stalls after NIGHT launch – Can ADA hold $0.405?

ambcryptoPublished on 2025-12-14Last updated on 2025-12-14

Abstract

The launch of Midnight's NIGHT token occurred during a period of significant losses for Cardano (ADA) holders, initially sparking a 30.6% rally from $0.37 to $0.484. However, the bullish momentum stalled as buyers failed to reclaim the key $0.52 resistance level. Technical indicators now signal a strong downtrend, with the critical support at $0.405 under threat. A break below this level could accelerate selling toward $0.37. While a cluster of short liquidations near $0.48 may attract prices upward, current market conditions and rising capital outflows suggest continued bearish pressure. Traders are advised to monitor a potential breakdown below $0.405 for short opportunities, though Bitcoin's volatility remains a factor that could disrupt this outlook.

The launch of the Midnight’s [NIGHT] native token came at a time when Cardano holders were facing heavy losses.

Those losses represented an “extreme buy” event for Cardano, and a rally could have been catalyzed by the Midnight sidechain launch.

A week before the 8th of December NIGHT launch, Cardano [ADA] token prices began a rally from $0.37. By the 9th of December, they were able to drive a 30.6% move to $0.484. However, the rally ended there.

The inability of the bulls to sustain the pressure and reclaim the $0.52 long-term resistance level meant that the bullish strength was no reliable strength after all.

Cardano indicators signal a strong downtrend in progress

On the 1-day chart, the swing low at $0.405 was under threat from sellers. A daily close below this level would shift the structure bearishly.

Further south, the $0.37 was another key support level. A breakdown below these two would herald the downtrend’s continuation.

The CMF showed that selling pressure was rising once again, with a drop below -0.05. Significant capital outflows confirmed what the DMI had been showing since the 10/10 crash.

Taken together, the daily indicators suggested the bearish trend remained intact.

The bullish Cardano argument

The 1-month Liquidation Heatmap showed a build-up of short liquidations above the recent swing high at $0.48. This magnetic zone could pull prices higher, like it did earlier this month.

While there was a sparsity of liquidations between $0.4 and $0.5, the $0.43-$0.44 pocket could oppose a quick rally.

Traders’ call to action- be prepared for bearishness

The price action on the daily chart showed that the structure remained bullish. However, the technical indicators and the recent Bitcoin [BTC] volatility did little to aid the ADA bulls.

Moreover, the rally that stalled at $0.48 was not halted at $0.45 or $0.43. This indicated a lack of buying pressure, which the CMF confirmed.

Therefore, traders can watch out for a drop below $0.405. Such a drop, followed by a retest of the same level as resistance, could offer a selling opportunity.

Final Thoughts

  • Traders looking for the downtrend to continue, be warned- the Bitcoin volatility could mess with a bearish continuation. Monday’s price action could give clues for next week’s moves.
  • If the $0.405 level is defended and Cardano climbs back above $0.43, bulls have reason to be cautiously optimistic.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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