Cardano price remained under pressure this week and is hovering above a critical support level as traders await key developments, including the upcoming Midnight mainnet launch. The ADA token was trading at $0.2653, a few points above the key support level.
Cardano Confirms Midnight Mainnet Launch Data
ADA price has been in a strong downward trend in the past few months as the crypto market crash accelerated. It has declined by nearly 80% from its peak in November 2024.
Cardano has had some major catalysts, including the recently launched CME ADA futures, which made it available to more American institutional investors.
The next important catalyst for Cardano price is the upcoming Midnight mainnet launch, scheduled for the last week of March this year.
Midnight is a major network development currently in its testnet, with its NIGHT token having a market capitalization of over $800 million.
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It will be an independent chain using zero-knowledge (ZK) proofs. It has attracted hundreds of developers, including well-known names such as Sundae Labs, Fluid Tokens, and Vacuumlabs.
Data shows that the network’s transactions are soaring in the testnet. It has already received over $3.7 million in block rewards and processed nearly 947,000 transactions. Cardano hopes that Midnight will lead to increased transaction volume and ecosystem growth.
Meanwhile, Cardano and its partners, including the Midnight Foundation, Emurgo, and Input Output, are developing Pentad, which aims to enhance the network. It aims to introduce more tier-1 stablecoins, analytical tools, and oracles to the network. It has already achieved several milestones, including the integration with Dune and Pyth Network.
The team aims for these developments, together with the Leios upgrade, to attract more developers to the network. Data shows that the network has a total value locked (TVL) of over $125 million, down by 30% in the last 30 days. Its stablecoin supply is a paltry $37 million, a tiny amount in an industry with billions of dollars in assets.
Cardano Price Technical Analysis
The weekly chart shows that the ADA price has collapsed, moving from a high of $1.3228 in November 2024 to the current $0.2675.
Cardano has fallen below the 50-week Exponential Moving Average (EMA) and is near the lower band of the Bollinger Bands. The Average Directional Index (ADX) has jumped to 31, a sign that the bearish trend is gaining momentum.
Most notably, the coin has found support at a crucial trendline, which connects the lowest swings since December 2022.
Therefore, there are two main scenarios going forward. A drop below the ascending trendline will confirm the bearish outlook and point to more downside, potentially below $0.200. On the other hand, the coin may have bottomed and will bounce back, potentially to the 50-week moving average at $0.5650.
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