Cardano Price Enters Its ‘Midnight Phase’: Beginning of a New 39% Dip?
Cardano price is up 8.6% in the past 24 hours as excitement builds around Midnight, its new privacy-focused subchain. In the lunar cycle, a midnight phase usually marks a reset — a moment before a new beginning. But for ADA, this reset may signal the beginning of a new drop instead.
The price still sits inside a bearish pattern, momentum remains weak, and several on-chain signals point toward a possible continuation of the same downtrend that has dominated for months. Could this be the beginning of a 39% ADA price dip?
Bear Flag Structure And Hidden Bearish Divergence Still Favor The DowntrendCardano is still trading inside a bear flag on the daily chart. A bear flag forms when a sharp fall is followed by a smaller, upward-sloping channel. That channel often acts as a pause before the same downtrend continues.
Between November 10 and December 9, ADA’s price made a lower high, while the RSI made a higher high. RSI, or Relative Strength Index, is a momentum indicator that shows whether buying or selling pressure is stronger. When RSI climbs, but the price fails to follow, it often signals that the bounce is weak and sellers still control the trend.
Because ADA is already down about 54% over the past year, this hidden bearish divergence supports the idea that the downtrend is not finished.
Cardano Price Leans Bearish: TradingView
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
The bear flag’s pole projects a possible 39% drop if the lower trendline breaks. That move would place ADA near $0.25, a deeper bearish target.
This sets the stage for the rest of the story: Midnight may mark a new phase for the network, but the chart still treats this bounce as part of a larger downtrend.
Decided to have a real look at Midnight ($NIGHT).