Cardano’s price fell 4% even as its privacy-focused partner chain Midnight successfully launched its mainnet.
summary
- Cardano price fell more than 4% despite the mainnet launch at midnight, as the whale dumped ADA before the event, leading to market pressure.
- Bearish technical indicators point to further downside risks, with key support at $0.20 and resistance near $0.28.
According to data from crypto.news, Cardano (Ada) The price fell more than 4% from $0.25 to $0.24 at last check on Tuesday, March 31. Taking the charts away, the token is down nearly 9% over the past week and more than 30% since the beginning of the year. Cardano’s price fell today after its privacy-focused sidechain, Midnight, The live broadcast has started On the mainnet yesterday.
The launch allows Cardano holders to manage confidential transactions and smart contracts with enhanced security. It will also enable enterprise-level privacy infrastructure to be deployed directly on the network.
While Charles Hoskinson, the founder of Cardano, did just that Midnight has long been praised As a final solution to the privacy challenges in the Cardano ecosystem, the price of ADA dropped as a whale dumped its holdings on the open market.
It is worth noting that Pisces exchange 940,000 ADA tokens versus 4.14 million NIGHT tokens just one day before the mainnet launch. The widespread liquidation led to panic in the market, which likely led to prices falling despite the bullish news for the network.
As such, if more whales switch to the NIGHT token, it could intensify the selling pressure for ADA in the short term.
Technical indicators seem to point to further downside for the token in the coming sessions.
It is worth noting that the Supertrend indicator turns red when it moves above the current price level. Meanwhile, the Chaikin Money Flow indicator showed a negative reading, a sign that capital was exiting the asset in favor of other opportunities.
In addition, the MACD lines formed a bearish crossover and turned lower, meaning that bears currently have a market advantage.
For now, traders are likely to keep an eye on $0.20, which is a key psychological support level that should hold to prevent further bearish sentiment from investors.
Conversely, a sharp bounce above $0.28, a resistance level that is in line with the Supertrend threshold, could trigger a rally to the January 6 high of $0.43.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
