Cardano Price Drop Accelerates as Midnight Network Launch Backfires
A brutal Cardano price drop is unfolding, with ADA plunging 10% to test support near $0.42. This decline is part of a double-whammy: a broad crypto sell-off following the Federal Reserve’s latest move has combined with a disastrous debut for Cardano’s own Midnight Network, whose NIGHT token crashed 80% immediately after launch. The convergence of macro pressure and ecosystem-specific turmoil has sent ADA to multi-month lows.
Technical Breakdown: ADA Tests Critical Support
The charts show a clear breakdown. ADA has sliced through the $0.45 support level and is now battling to hold the $0.42 zone. The technical posture is bearish: the MACD has executed a negative crossover, and the RSI sits at 40, signaling weakening momentum. For any hope of a near-term reversal, bulls must urgently reclaim the $0.438 – $0.440 range. Failure to hold $0.42 opens a path toward the next significant support near $0.41, potentially extending the Cardano price drop further.
The Ecosystem Catalyst: Midnight Network’s NIGHT Token Implodes
The launch of Cardano’s much-anticipated privacy-focused Midnight Network has backfired spectacularly in the short term. Its associated NIGHT token, which briefly spiked to $0.150, has collapsed by 80% to trade around $0.05. This crash was driven by massive selling from airdrop recipients capitalizing on the initial hype. The dramatic failure of a flagship ecosystem token launch severely damages sentiment and overshadows founder Charles Hoskinson’s boasts about the network’s capabilities, highlighting the challenges of managing speculative frenzy.
Market Sentiment Overwhelmingly Turns Bearish
The data reflects a pervasive lack of confidence. In derivatives markets, 59% of all active positions are now short bets against ADA, showing traders are expecting further downside. This aligns with the broader market reaction to the Fed’s “hawkish cut,” which triggered profit-taking across crypto. The combination of negative macro winds and a failed internal catalyst has created a perfect storm for sellers.
My Thoughts
This is a painful but necessary recalibration. The Cardano price drop exposes two issues: ADA remains highly correlated to macro moves, and its ecosystem launches are still judged by speculative token price action rather than utility. The NIGHT token dump is a classic “sell the news” event that damages retail morale. However, if the Midnight network itself proves technically robust over time, this token price crash may become a footnote. For now, ADA needs to find stability. A hold above $0.42 could set up a tactical bounce, but the trend won’t turn bullish until it reclaims $0.50.
