In-depth analysis: NIGHT has recently experienced a downward fluctuation, but technical indicators still suggest a rebound opportunity

Real-Time Market Comparison

Midnight [NIGHT] latest data shows a change in the situation. According to the latest update, NIGHT has experienced a 24-hour decline of -4.21% and a 7-day decline of -14.31%. In comparison, Bitcoin [BTC] has fallen -2.39% in the past 24 hours, with a 7-day gain of +2.46%.

Compared to the upward trend reported earlier, NIGHT’s recent movement appears more complex, reflecting underlying technical changes.

Pullback from Highs: The Battle for Key Support Levels

Tracing NIGHT’s recent trend, the token saw a significant correction after reaching a high last week. Technical analysis indicates that the $0.083 level has shifted from a short-term resistance to a support, and the current price hovers around this zone, making it a critical point.

Although the sharp drop from $0.120 to $0.0718 has passed, the 34% rebound is limited, and the current pullback near $0.06 indicates weakening buying momentum.

Technical Perspective: Weak Trading Volume as a Concern

From the volume indicator, although NIGHT previously topped CoinGecko’s trending tokens list, trading volume has sharply contracted as the price rose. The CMF (Capital Flow Index) struggles to break above +0.05, serving as a warning sign for bulls.

Declining volume implies:

• Reduced market participation
• Lack of new buying support for upward momentum
• Further upward movement requires stronger catalysts

Fibonacci Levels and Expected Targets

Based on the Fibonacci retracement levels drawn from the rebound structure earlier this month, the $0.073 (78.6% retracement level ) has been tested. Subsequently, the price experienced consolidation below $0.083 for several days. The breakout on December 27th temporarily pushed through the $0.09 resistance, but momentum then waned.

If the price can stabilize above the $0.1 psychological level: The Fibonacci extension at $0.134 will become the next potential target, indicating more than double the current upside potential.

Risk Assessment and Rebound Opportunities

Bearish scenario: Although not the main expectation, a larger correction in Bitcoin (dropping below $85,000) could dampen overall market sentiment and impact NIGHT’s movement.

Bullish scenario: The H4 timeframe still shows a bullish structure, with short-term BTC stability. CoinGlass liquidation map indicates high leverage long liquidations concentrated in the $0.088-$0.09 zone, which could serve as a key support or rebound point.

Trader Entry Points

First entry point: If the $0.1 psychological resistance is effectively turned into support with volume picking up, it would signal a strong buy opportunity.

Second entry point: When the price dips into the high liquidation zone of $0.088-$0.09, the risk-reward ratio is favorable, making it a good opportunity for buying on dips.

Summary

As a privacy-focused Layer 1 network within the Cardano ecosystem, Midnight has recently faced price correction pressure. However, from a technical and microstructural perspective, the possibility of a rebound remains. The key factors are whether trading volume can recover and the stability of major cryptocurrencies (especially BTC). Investors should closely monitor the performance of these critical support levels to seize potential entry opportunities.