Midnight [NIGHT] has shed 6.7% of its value in the last 24 hours after Bitcoin’s [BTC] price was rejected from its $73.9k local highs. The wider market’s bearish momentum over this period likely contributed to NIGHT’s value falling lower.
Coinalyze data revealed an uptick in the spot CVD in recent days. However, this was overshadowed by the negative funding rates and falling Open Interest. It hinted at short-term bearishness for the token.
Midnight was in the news recently when spot trading of the token went live on Binance on Friday, 13 March. It was also recently announced that Canadian digital asset custodian Balance would provide custody support for Midnight Network as its mainnet launch approaches.
Real utility can bring real demand for NIGHT
The mainnet is scheduled to launch in the final week of March. The privacy-focused sidechain uses the native NIGHT token for transaction fees, staking, and governance.
On 26 February, the Midnight City Simulation was unveiled. It is populated by autonomous AI agents that generate real transactions and activity, offering a peek at rational privacy in motion.
The news was unable to drive prices beyond the $0.061 local highs. Technically, NIGHT had a bearish structure on the daily chart at press time. The series of higher lows formed above $0.05 in the second half of February was not defended in March.
The price was at the $0.047 support once again. This drop could offer swing traders a buying opportunity. The buying idea will be invalidated upon a daily trading session close below $0.0473.
Exploring the safer NIGHT trading option
It would be safer to trade with the trend than against it. The 4-hour and 1-day charts showed bears have an advantage. On the 4-hour chart, the price structure was clearly bearish.
Though the OBV made a new local high, the altcoin might not be able to reverse the downtrend. Sustained buying is necessary for that, but NIGHT witnessed a sell-off at the $0.054 supply zone on Friday.
A bounce towards $0.055-$0.059 would offer a less risky opportunity to sell NIGHT than buying it at $0.047. Traders and investors should also keep an eye on Bitcoin price trends over the next week as it could affect NIGHT.
Final Summary
- NIGHT was unable to reclaim the $0.062-level as support, shedding 21.78% in the last ten days.
- It was trading at a local support and could see a price bounce towards $0.055-$0.059.
Source: https://ambcrypto.com/binance-listing-fails-to-stop-nights-downside-but-will-that-change-soon/