Midnight holds $0.50 support – Will NIGHT rally higher?

Midnight [NIGHT] faced rejection at $0.56 a week ago, falling to a low of $0.47. However, as the broader crypto market rebounded, NIGHT’s downside spiral reversed. 

As a result, Midnight successfully held the $0.5 support level and climbed to a local high of $0.58. In fact, at press time,  NIGHT traded at $0.56, up 12.35% on the daily charts. 

Over the same period, its market capitalisation reached $1 billion before falling to $941 million, indicating strong bullish momentum.

Midnight defends key levels

As the broader market signalled recovery, NIGHT buyers increased accumulation, which boosted the altcoin’s attempted rebound. 

Since then, Buy Volume to Price Pressure rose to 51 as of writing, while the sell pressure to the market dropped to 23. This implies that, although sellers were active, buyers outpaced them and drove prices higher in the short term. 

Additionally, Buyer Dominance increased to 93 million, while seller volume dominance declined to 36 million. This left the market with a positive Net pressure of 57 million, a clear sign of aggressive spot accumulation. 

Higher demand in the spot market has often accelerated upside momentum, leading to higher prices.

Derivatives are even more optimistic

Interestingly, as NIGHT began to recover from the recent slip, investors rushed into the futures market to secure strategic positions.

According to CoinGlass data, Open Interest (OI) rose 18.45% to $38.14 million while the Derivatives Volume climbed 45.9% to $66.05 million, at press time.

Usually, when OI and volume rise in tandem, it suggests increased participation and capital inflows into both short and long positions. Meanwhile, the altcoin’s Long Short Ratio rose to 1.11, with traders on Binance dominating the market with an average ratio of 1.

When the ratio exceeds 1, it suggests that most participants were bullish and positioned themselves to await further gains.

Can NIGHT’s momentum hold?

Midnight rebounded as fresh demand returned across the market. Buyers entered the market, building on the momentum generated by the recent announcement of Google’s and Telegram’s partnership and mainnet launch by late March.

For that reason, the altcoin’s Stochastic RSI climbed to 88, at the time of writing, reaching overbought territory. Likewise, its Relative Vigor Index (RVGI) rose to 0.09, further supporting the trend’s strength.

When these momentum indicators reach elevated levels, they signal strong momentum, with buyers having the upper hand in the market.

Therefore, if demand for NIGHT holds, the uptrend will persist and target the $0.62 resistance level. On the other hand, since sellers remain active, if they flip the power dynamics, the altcoin will breach the $0.5 support again.

Final Summary

• Midnight successfully held the $0.5 support level, rising to a high of $0.58 before retracing to $0.56. 
• A flip in sentiment across the crypto market incentivized buyers to step in and accumulate NIGHT.