Midnight price prediction – Can NIGHT defend KEY support and rally 26%?
Will NIGHT's price range exend and offer extra gains?
Midnight [NIGHT] has shed 12% this week as of writing, amid inflation-driven broader market weakness. But the pullback has hit a crucial short-term support level at $0.041 that could give bulls a new entry opportunity if the macro landscape improves.
Will Midnight crypto defend its price range?
Since late September, NIGHT’s price has been range-bound, swinging between $0.052 and $0.041. If the sideways action extends ahead of the Fed rate decision at the end of October, then the range highs and lows could still offer trading opportunities.
That would mean a 26% upside potential could be feasible if the range low of $0.041 is defended.
But the sideways outlook would be invalidated if price falls below the moving averages shown above. That would flip the market structure bearish. In such a scenario, a greater downside risk to $0.035 or $0.029 could not be ruled out.
Such a deeper risk-off move could be confirmed if the RSI slips below the neutral level and price dips below the moving averages.
Liquidation data suggests a potential NIGHT price reversal
On the 1-month liquidation heatmap, the largest liquidity pool was concentrated right above the $0.05 level. This upside liquidity pool denoted leveraged short sellers that could trigger a short squeeze and a potential price reversal.
In other words, in a likely volatile market situation, the upside target of $0.053 could be tagged. If so, NIGHT’s 26% upside potential could become feasible.
However, if U.S. inflation worsens and drags Bitcoin [BTC] lower, then NIGHT may break below its short-term support and price range.
Midnight promises institutional privacy and has been riding on the broader privacy narrative that lifted Zcash and other assets. However, the privacy segment has trended lower and consolidated in the past few weeks.
Given that NIGHT is also moving in lockstep with the privacy segment, its next move may be determined by the sub-sector.
Overall, NIGHT’s retested a typical short-term price range low that could attract buying demand if the broader privacy market recovers. But in case of another risk-off move, the sideways structure could be broken.
Final Summary
- Midnight price correction has hit a short-term support and range low at $0.041
- A strong rebound at the support could offer a 26% potential gain if the broader market does not experience another risk-off move.
