The NIGHT price held steady this week as investors waited for the upcoming Midnight mainnet launch, which is expected to take place this week. Midnight token was trading at $0.0465, up by 10% from its lowest point this week.
NIGHT Price in Focus Ahead of Midnight Mainnet Launch
This will be an important week for Cardano as the developers launch Midnight, the zero-knowledge-based sidechain that enables developers to build privacy-focused applications.
While the date of the mainnet launch has not been announced, Input Output Group hinted that it will happen this week. If this week passes, then the mainnet launch will happen either on Monday or Tuesday next week, when the first quarter ends.
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Midnight has already received some major blue-chip partners, including popular companies like MoneyGram, Bullish, and WorldPay.
The launch happens at a time when demand for privacy is rising in the crypto industry. A good example of this was last year’s surge of Zcash, Monero, and Decred tokens.
Other chains in the crypto industry are also embracing privacy. For example, Ethereum is aiming to launch stealth addresses this year. Stealth addresses will enable users to select whether their transactions are public or private.
The NIGHT token volume has continued rising this week, a sign that demand is rising. Data compiled by CoinMarketCap shows that the daily volume jumped to nearly $1 billion, making it one of the most heavily traded tokens in the crypto industry.
The same is happening in the futures market, where the open interest has risen gradually in the past few weeks. It jumped to $33.6 million from this month’s low of $25 million.
In theory, the upcoming Midnight mainnet launch should be bullish for the coin. However, there is a risk that it may lead to a pullback as investors sell the news.
Midnight Price Has Formed a Risky Pattern
NIGHT token chart | Source: TradingView
The 12-hour chart shows that the NIGHT token has slumped in the past few weeks. As a result, it has remained below the 50-period moving average.
Most notably, the coin has formed an inverted cup-and-handle pattern, whose lower side is at $0.042. It then formed a rounded top whose upper side is at $0.065.
Therefore, the coin will likely resume the downward trend, with the initial target being at $0.042. A move below that level will point to more downside, potentially to the all-time low of $0.035.
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