Midnight keeps getting rejected at $0.05 – Is NIGHT’s third time the charm?

Midnight [NIGHT] is up more than 10% in the past 24 hours, bringing its 30-day gains to over 115%. The rally comes as the altcoin’s parent chain coin, Cardano [ADA], rallied amid momentum from its fundamentals.

Hence, this is narrative-based buying, as its on-chain activity remains relatively low.

Why is Midnight surging?

Getting into the details, Cardano surged by double digits yesterday, but its ecosystem coins were yet to pick up. However, its momentum from the launch of RealFi and upgrade prospects spilled over to NIGHT.

Apart from that, privacy coins like Zcash [ZEC] were trending, and NIGHT was not an exception. It is the privacy layer for the Cardano ecosystem and has been tipped to become bigger than Zcash, though it remains far away.

As a result, its token trading volume has surged by 224% over the past 24 hours. The sum for the past seven days is at $463.6 million.

Worth noting, this week’s daily average was falling from a high of $112 million on the 1st of October to about $32 million at press time. This indicated trading activity was reducing, explaining why NIGHT’s price was struggling to break past the $0.05 zone.

Meanwhile, its on-chain activity remained low, with the transaction count in the past month declining by 11%.

NIGHT is on a fantastic run but faces rejection at $0.052

Since NIGHT broke above the 20-day EMA, it has been in a fantastic uptrend. This surge followed an accumulation at $0.02. It has bounced off this EMA support three times.

Now, NIGHT is trading above both the 50-day and 200-day EMAs, with both the RSI and MACD showing buyers’ strength.

However, the four-hour timeframe shows the altcoin is consolidating just below $0.05. This consolidation is after its advances were rejected twice at this level.

Even the MACD shows bears are in control in the short term, though their strength has faded. This reading could be hinting at bulls’ return with the slanting trendline as the buying zone.

Therefore, NIGHT remains bullish even in the short term, as its price is trading above the MA Cross. Moreover, the Aggregated Funding Rate is green with a reading of 0.0041%, indicating buyers are paying premiums to keep their positions open.

Thus, breaking above $0.05 remains viable, but losing the slanting support or the demand zone at $0.044 could cap this uptrend.

Final Summary

• Midnight’s price rallied 10% in the past 24 hours as Cardano’s uptrend momentum spilled over to the altcoin. 
• NIGHT reclaimed the 20-day EMA and has been in a strong uptrend but faces a key test at $0.05.