Cardano price forms falling wedge as Midnight launch nears

Cardano’s ADA is tracing a falling wedge on the daily chart and recently posted a bullish crossover after touching a monthly low of $0.3895. Traders are monitoring $0.5097 as a nearby level if momentum continues to stabilize ahead of the Midnight sidechain launch.

The falling wedge, defined by two descending, converging trendlines, is approaching its apex, an area where breakouts often emerge in technical analysis. Momentum readings have improved. The Relative Strength Index has climbed from an oversold level near 23 to about 40. The Percentage Price Oscillator has turned into a bullish crossover, and its histogram is nearing the zero line. A sustained drop below $0.3895 would invalidate the setup.

ADA’s slide to the monthly low leaves the token about 58% below its year-to-date high, reflecting the broader crypto drawdown in recent months. Momentum stabilization on the daily chart contrasts with the earlier decline.

Attention now centers on Midnight, an upcoming Cardano sidechain designed with zero-knowledge technology for privacy-focused applications. Project materials describe Midnight as aiming to improve security features, broaden the developer base and expand user activity on Cardano-linked platforms. The launch is set to introduce the NIGHT token, following a Glacier airdrop that allowed eligible participants to claim tokens.

The timeline around Midnight has become a focus for ADA traders, who are weighing chart signals alongside product milestones. One open question is how activity will split between the base Cardano chain and Midnight after launch, as developers consider which environments best fit their applications.

For near-term trading, the chart highlights a wedge nearing convergence, improving oscillators and clear levels. The $0.5097 area, marked as the June 22 swing low, is the first resistance in view, while $0.3895 remains the key support that would negate the current pattern.

As GNcrypto covered previously, the Midnight Foundation finalized the NIGHT token on Cardano, minting 24 billion tokens at block 12,517,624 last month and at block 12,696,233 on Nov. 25, with the full supply held at a single address. The official launch is set for Dec. 8, 2025, when buybacks tied to earlier airdrops and first exchange listings are expected; only 25% of allocations will be claimable at launch, with the rest vesting in four stages over a year. Midnight targets “rational privacy” using zero-knowledge proofs, following Glacier Drop and Scavenger Mine, with a final Lost and Found phase planned.