Cardano Price Outlook as Charles Hoskinson Forecasts Midnight Could Overtake ADA by Market Cap

Cardano (ADA) price has dropped 27% in one month amid a surge in selling pressure and a bearish sentiment across the crypto market. During the same period, NIGHT token has increased by 3.38%.

As transactions on the Midnight network increase and usage grows, Cardano founder, Charles Hoskinson, now says that NIGHT could one day overtake ADA by market capitalization.

ADA value today trades at $0.170 with an intraday loss of 3.18%.

Charles Hoskinson Says NIGHT Could Flip ADA

In a recent interview, Hoskinson opined that it was “absolutely” possible for Midnight to overtake Cardano by market cap. However, he added that the growth of Midnight is inherently bullish for Cardano.

“There is a lot of traction behind Midnight right now, and it’s growing by leaps and bounds, and it’s growing counter-cyclic to the market… if Midnight grows, I think it’s going to grow Cardano considerably,” Hoskinson said.

Hoskinson also noted that Midnight could emerge among the top three or top five projects in the privacy ecosystems. As CoinGape reported previously, Hoskinson previously predicted that Midnight could outperform Zcash in private smart contracts.

While Hoskinson notes that Midnight’s success could support gains for Cardano price, the recent ADA performance compared to NIGHT suggests that the latter is taking the lead.

NIGHT Token Outperforms Cardano Price as Market Cap Nears $1B

NIGHT token has been performing better than Cardano for the last two months.

TradingView data shows that NIGHT token price has gained from $0.020 on September 12 to $0.046 at the time of writing. This represents a 130% price increase. The market cap also stands at $774 million.

On the other hand, Cardano price has dropped by 20% during the same period since September 12, with its chart printing an inverse movement to NIGHT.

This drop suggests that while Cardano price is reacting to the bearish performance of the broader crypto market, NIGHT token is showing much resilience, especially as the adoption of the network rises.

Recently, Monument Bank, unveiled a tokenization project for £250 million on the Midnight network, further making a bullish case for the token.

Futures Market Supports a Bearish Thesis

Data from CoinGlass supports a bearish long-term Cardano price prediction. Firstly, the weighted funding rate has dropped to -0.0089%. A negative funding rate shows that short sellers are paying long buyers to keep their positions open as they bet on a decline in ADA price.

At the same time, the Taker Buy/Sell ratio across all exchanges has dropped below 1. This also shows that there are more sell orders than buy orders, and this is causing a decline in Cardano price.

Meanwhile, the open interest has dropped by 9% in 24 hours to $368 million at the time of writing. This falling open interest coincides with the liquidations of long buyers, which is increasing the selling pressure and pushing the Cardano price down.

Cardano Price Prediction as Crash to $0.14 Looms

Cardano price is in a clear downtrend on the weekly chart. At $0.168, ADA now trades at its lowest price since July, and the relentless selling and long liquidations suggest the dip might continue.

If the downtrend continues, ADA price will likely drop to the 123.6% Fib of $0.2145. Losing this support could then trigger a crash to a new multi-year low of $0.10.

The RSI reading is at 39, showing that the momentum is favoring bears. Interestingly, this RSI suggests that Cardano price is not yet oversold despite the steep decline that started in early October.

The AO bars are also negative and growing in length to suggest that bears are tightening their grip as the downtrend continues.

Going with these indicators and the chart setup, Cardano price is likely facing a retest of $0.14 in the near term. The altcoin will only confirm a bullish reversal if it closes above $0.21 for three straight weeks.