Cardano price fell 4% even as its privacy-focused partner chain Midnight successfully completed its mainnet launch.
Summary
- Cardano price dropped over 4% despite Midnight’s mainnet launch, as a whale offloaded ADA ahead of the event, triggering market pressure.
- Bearish technical indicators signal further downside risk, with key support at $0.20 and resistance near $0.28.
According to data from crypto.news, Cardano (ADA) price fell over 4% from $0.25 to $0.24 last check on Tuesday, March 31. Zooming out the charts, the token has fallen nearly 9% over the past week and over 30% since the beginning of the year. Cardano’s price dropped today after its privacy-focused side chain, Midnight, went live on the mainnet yesterday.
The launch allows Cardano holders to manage confidential transactions and smart contracts with enhanced security. It would also enable institutional-grade privacy infrastructure to be deployed directly on the network.
While Charles Hoskinson, the founder of Cardano, has long lauded Midnight as the ultimate solution to privacy challenges on the Cardano ecosystem, ADA price fell as a whale dumped holdings on the open market.
Notably, the whale swapped 940K ADA tokens for 4.14 million NIGHT tokens just a day ahead of the mainnet launch. The large-scale liquidation drove market panic, which likely resulted in this price drop despite the bullish news for the network.
As such, if more whales rotate into the NIGHT token, it could further intensify selling pressure for ADA in the short term.
Technical indicators seem to hint at more downside for the token in the coming sessions.
Notably, the Supertrend indicator has turned red as it moves above the current price level. At the same time, the Chaikin Money Flow index showed a negative reading, a sign that capital was exiting the asset in favor of other opportunities.
Additionally, the MACD lines have formed a bearish crossover and have turned downwards, which means bears currently hold the market advantage.
For now, traders would be likely to keep an eye on $0.20, a major psychological support level that must hold to prevent more bearish sentiment from investors.
On the contrary, a sharp rebound above $0.28, the resistance level that aligns with the Supertrend threshold, could spark a rally to its January 6 high of $0.43.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
