Since holding $0.22 support a week ago, Midnight [NIGHT] has shown relative strength, closing with higher highs. The altcoin extended its bullish structure with the end of September, flipping $0.03 resistance and rising to $0.33.
NIGHT has not reached these levels since early July. As of this writing, Midnight was trading around $0.032, up 13% on the daily charts.
The price hike was backed by a strong jump in both trading volume and daily turnover. The Spot volume climbed 50% to $54 million while the daily turnover rose $26 million, reflecting strong buy-side activity.
Why is Midnight rallying?
Midnight saw strong expansion on the charts and flipped $0.03 driven by positive chatter. After Weiss Crypto projected that NIGHT is likely to become one of the best players of the next two years, Charles Hoskinson agreed.
The Cardano co-founder posited that Midnight could become bigger than Zcash. Hoskinson noted that Midnight goes well beyond Zcash’s shielded transactions as it aims for programmable and rational privacy via selective disclosure.
Hoskinson’s assessment sparked heated debate, with some agreeing and others expressing skepticism. DeFi Warhol, for example, argued that at the current pace, two weeks of Zcash’s activity equals Midnight’s entire public transaction count.
With Zcash enjoying over 10 years of liquidity, it would be nearly impossible for Midnight to close the gap in such a short term, DeFi Warhol concluded.
Risk appetite returns
The public discourse around NIGHT brought about increased market activity. The derivatives market especially saw fresh participation.
According to CoinGlass data, the altcoin’s Open Interest rose 17% to $23.8 million while the derivatives volume jumped 88% to $77.6 million. The rising OI implied that investors rushed to open leveraged bets.
Meanwhile, the Long/Short Ratio on Binance climbed to 1.4, with top trader positions rising to 2.9. However, the overall ratio has yet to move above 1, implying that most traders are still anticipating the market to drop.
Can the trend hold?
Presently, NIGHT sits structurally strong. Notably, its MACD has held within an upward trajectory. Likewise, the True Strength Index (TSI) has also held within the upward trajectory.
Combined, the two indicators signal the likelihood of the trend’s continuation. If demand is sustained, Midnight will reclaim $0.034, leaving $0.04 as the next significant resistance.
However, the Spot market is still under pressure from profit realization. Over the past 24 hours, for example, $11.5 million worth of NIGHT flowed into exchanges compared to. $10 million in outflows.
With the sellers active on the Spot, they are likely to derail the recent uptick. Continued selling activity here will see Midnight fall back to $0.027.
Final Summary
- NIGHT surges 13%, flipping the $0.03 resistance to a two-month high of $0.033.
- Midnight saw fresh market attention after Charles Hoskinson claimed that NIGHT will become bigger than Zcash.
