Cardano’s price rally stalled today, Dec. 4, even after developers launched the NIGHT token ahead of the closely watched Midnight launch.
Summary
- Cardano price remained in a tight range after the NIGHT token launch.
- NIGHT has become the first Cardano Native Asset.
- The launch came ahead of the Midnight mainnet launch.
Cardano (ADA) token was trading at $0.4475, up modestly from this month’s low of $0.3713. According to crypto.news, the token has a market capitalization of over $16 billion.
In a statement, the Midnight Foundation said that it had launched the NIGHT token, which has now become the first Cardano Native Asset. The foundation expects that the launch will provide immediate liquidity while the team continues building.
The next important stage will be the Midnight launch, which will happen next week, creating the first zero-knowledge sidechain on Cardano. Once this happens, NIGHT’s total supply will be mirrored at the Midnight ledger, and Glacier airdrop participants will be able to redeem their tokens.
Charles Hoskinson, Cardano’s founder, believes that Midnight will help to scale the network and boost its stablecoin supply and its decentralized finance assets.
Midnight is one of the several approaches that Hoskinson and the team are working on. Last week, they launched a proposal to use 70 million ADA tokens from the treasury to build and improve the ecosystem. The funds will be used to boost stablecoin supply, attract quality oracle providers like Chainlink, and improve its analytics.
At the same time, the developers are working on Leios, a major redesign of the consensus protocol that aims at boosting scalability and transaction throughput. It will do that by introducing the concept of parallel processing.
Another possible catalyst for Cardano price is that Grayscale may decide to launch its ADA ETF later this month of in early 2026, a move that will increase its demand from American investors.
Cardano price technical analysis
ADA price chart | Source: crypto.newsThe daily timeframe chart shows that the ADA price bottomed at $0.3713 earlier this week as the crypto market crashed.
It then rose modestly as Bitcoin and other altcoins rose and the countdown to the Midnight mainnet launch neared.
Still, it is too early to predict that a new bull run is starting as the coin remains below the important resistance level at $0.5077, its lowest levels in February, April, and June this year.
A bullish breakout will be confirmed when it moves above that level and then the 100-day Exponential Moving Average at $0.6100. A drop below the support at $0.3713 will invalidate the bullish outlook.
Source: https://crypto.news/cardano-price-rally-night-token-debuts-midnight-launch/
