Key Insights
- Cardano price has risen in the last two consecutive days.
- The rally is partly because of the upcoming Midnight Launch.
- Technicals point to a brief rebound followed by a retreat.
Cardano price rebounded in the past two days. Sentiment in the crypto market improved. Traders waited for the Midnight Mainnet and the NIGHT token launch. ADA price rose to $0.4460, up by 16.5% from its lowest level this week.
Cardano Price to React to the Upcoming Midnight Mainnet Launch
One key catalyst for the Cardano price comes next week. Charles Hoskinson and his team will launch Midnight and the NIGHT token. This event could drive fresh momentum and attract strong investor interest.
Midnight, which has been in development for years, is a sidechain built on Cardano. Unlike most sidechains, its focus is on privacy, which it enables using the zero-knowledge technology.
In multiple statements, Hoskinson has argued that Midnight will solve most of the issues that Cardano has today. For example, he expects the network to have robust TVL as it attracts developers and users.
He also expects to have oracle providers and a more stablecoin supply in the network. These assets will be on Midnight. However, Hoskinson has said that they will be Cardano assets since the network is based on Cardano’s architecture.
The upcoming Midnight launch will therefore have an impact on the ADA price depending on its performance. A surge in the number of users and assets will likely benefit ADA as it will be a new growth driver.
However, the opposite will also be true, in that the Cardano price will drop if its initial reception is not all that good.
Additionally, the ADA price will also react to the NIGHT token launch. That’s because many Cardano users took part in the Glacier airdrop. This gave them the ability to claim NIGHT tokens, which they will be able to use after the launch.
Cardano Funding Proposal to Boost Its Performance
The Midnight launch comes as Hoskinson and the team work to boost the network growth after years of stagnation. In a statement released last week, the teams announced that they will utilize 70 million ADA tokens from the treasury to fund critical integrations.
The funds will be used to attract tier-1 stablecoins like USDT and Circle. It’s a move that will solve one of the main challenges that have hindered its performance.
Data compiled by DeFi Llama shows that Cardano’s network has less than $40 million in stablecoins. Most of them are largely inactive. The biggest stablecoins in the network are Moneta (USDM), Anzens (USDA), and Djed.
Djed, which Cardano launched a few years ago, has struggled and now has $3.6 million in assets. The funding will also be used to secure the best institutional custody and wallets, as well as to enhance on-chain analytics.
It will also break the walls by introducing cross-chain bridges and launching oracle partnerships. The last part is important in that, many years after its launch, Cardano has yet to secure a Chainlink integration.
Meanwhile, there is a possibility that Grayscale will launch its Cardano ETF either this year or in 2026. In theory, this launch should boost its demand by making it available to American institutional investors. However, Cardano’s weak fundamentals may lead to a poor reception.
Cardano Price Technical Analysis
The daily timeframe chart shows that the Cardano price has been in a strong downward trend in the past few months. It has underperformed other similar tokens like Solana and Binance Coin. They have experienced strong ecosystem growth.
The token has formed a small bullish engulfing pattern. It is made up of a big bullish candle that fully engulfs a bearish one. It is one of the most common bullish reversal signs in technical analysis.
The token will likely rebound ahead of the Midnight launch. Investors may sell once the news breaks. The price could then resume its downtrend.
Such a rebound may see it retest the psychological level at $0.50, which is about 15% above the current level. On the other hand, a drop below the year-to-date low of $0.3738 will invalidate the bullish ADA price forecast.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
