Cardano price nosedived by over 6.7% as the recent Midnight airdrop hype turned sour, and as the crypto market crash accelerated after the Federal Reserve interest rate decision. ADA token dived to a low of $0.4228, down sharply from this week’s high of $0.4850.
Cardano Price Dives as NIGHT Token Loses Momentum
The ADA price has not been left behind by the ongoing crypto market crash that has affected Bitcoin and most altcoins as investors reacted to the latest Federal Reserve interest rate decision on Wednesday.
While the bank cut rates by 0.25% and restarted its quantitative easing policy, analysts were disappointed by its guidance, which indicates it will cut rates just once in 2026. There are also signs of pushback against increased rate cuts, as two Fed officials voted for a continued pause.
The pushback means that Donald Trump’s nominee to the Fed Chair will not have an easy time when cutting interest rates next year. On the positive side, the dot plot is not a fixed document, and in the past, officials have changed their minds based on incoming data.
Cardano price also crashed as the recent enthusiasm about the Midnight launch faded. The NIGHT token, which soared on Wednesday as the redemption period started, dropped by over 30% today, bringing its market capitalization to $748 million. Its valuation crossed the $1 billion milestone on Monday as its price surged.
The NIGHT token price is dumping as investors who received it started selling their allocations. This is a common situation that happens whenever a new token launches. Additionally, the circulating supply of the NIGHT token stood at 16.6 billion, which is a high figure. More tokens will be unlocked three more times, with the final one happening in September next year.
There are still substantial concerns about whether Midnight will solve the main issues facing Cardano, including the lack of interest from developers, institutions, and retail traders.
Technicals Have Contributed to the ADA Price Dump
Meanwhile, technicals have also contributed to the ongoing ADA price crash. The daily chart shows the token has been in a strong downward trend, with a series of lower lows and lower highs.
The token also formed an inverted cup-and-handle pattern, with the lower side at $0.5143 and the upper side at $1.0172. It is now creating a bearish flag pattern, a common bearish continuation sign.
It has also remained below all moving averages, confirming the bearish outlook. Therefore, the token will likely break down strongly, with the next key target at $0.3730, its lowest level this month.
A move below that support level will point to more downside, potentially to the psychological level at $0.3000, which is about 30% below the current level.
On the other hand, a move above the key resistance at $0.5143 will invalidate the ADA prediction and point to more upside.
