Investors in Cardano are witnessing a stark contradiction. The cryptocurrency’s native token, ADA, is testing critical support levels and hitting annual lows, while its underlying ecosystem experiences a period of remarkable growth. This disconnect between price action and fundamental development is creating a complex landscape for market participants.

Fundamental Momentum from Midnight Launch

Contrary to the bearish price trend, the Cardano network is buzzing with activity. This surge is primarily attributed to the successful launch of the privacy-focused partner blockchain, “Midnight,” and its associated NIGHT token. In under a week since its debut, NIGHT achieved a market capitalization exceeding one billion US dollars, generating substantial trading volume.

This momentum has a direct, positive impact on the main Cardano blockchain. On-chain data confirms that more than 133,000 transactions on the Cardano mainnet are already linked to the NIGHT token. Founder Charles Hoskinson hailed the launch as a major success, noting that the integration is significantly driving network usage—a fundamental value driver currently overlooked by the market.

Technical Chart Presents a Warning

On the trading charts, ADA faces significant selling pressure, with its price currently at $0.37. This level represents a crucial support zone and simultaneously marks a new 52-week low. Technical indicators reinforce the current weakness: with a Relative Strength Index (RSI) reading of 32.5, the token is deep in oversold territory. Market observers caution that a sustained break below the $0.37 support could pave the way for further declines toward $0.30. The nearest resistance levels are not seen until the $0.41 area.

Should investors sell immediately? Or is it worth buying Cardano?

Institutional Backing and Macro Context

Despite the price weakness, institutional interest remains intact. Analysts point out that ADA is now included in all six major cryptocurrency index products tracked by Bloomberg, with weightings ranging from 0.6% to 10%. This inclusion ensures continued inflows of passive capital.

The broader macroeconomic environment appears favorable, with Bitcoin climbing to $90,000 today, supported by cooling inflation data. Cardano’s failure to participate in this rally has fueled narratives labeling the coin as “dead capital.” However, experts counter this view by pointing to Cardano’s technological roadmap extending to 2026 and the potential for ADA to be classified as a commodity by U.S. regulators.

Cardano is currently caught in a tug-of-war between a strong technical downtrend and robust fundamental growth. Investors must now weigh whether the chart-based weakness will dominate or if the network activity generated by the Midnight protocol will force a medium-term revaluation. As long as the $0.37 support holds, the possibility for stabilization remains.

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