![Midnight [NIGHT] drops 16% amid liquidation surge and retail selling](/_next/image?url=https%3A%2F%2Fimages.askfuzz.ai%2Farticle_images%2Fmidnight-night-drops-16-amid-liquidation-surge-and-retail-selling.webp&w=3840&q=75)
Midnight [NIGHT] declined approximately 16% in 24 hours, bringing its two-day drawdown to more than 21%. According to reports from AMBCrypto, this decline coincides with the broader crypto market approaching a $2 trillion valuation from above $2.50 trillion as the week began. The price movement reflects significant loss of confidence across NIGHT's ecosystem, compounded by liquidations and retail selling pressure.
Long traders demonstrated clear capitulation with liquidations 109x larger than those of bears, as reported by AMBCrypto citing data from CoinGlass. In 24 hours, $74K in long positions were closed while shorts only lost $678. Over a three-day period, longs worth more than $170K were wiped out, while only $4K worth of sell orders were liquidated during the same timeframe. Long liquidations have been the dominant trend since the beginning of May, indicating bulls surrendering to bear pressure.
According to AMBCrypto analysis, NIGHT lost a slanting trendline support that formed after a double bottom pattern at around $0.03. The price defended this trendline until hitting $0.042, but sellers swept buy-side liquidity at $0.03882 and consolidated around this region. The breakout above $0.03882 proved to be fake, with the Top Traders Long/Short Ratio Accounts falling from 2 to 1.29, indicating large holders on Binance were offloading their NIGHT tokens. Additionally, the Chaikin Money Flow (CMF) dropped from 0.21 to negative 0.33 in four days, reflecting market-wide capital outflow.
As reported by AMBCrypto, retail holders demonstrated contrasting behavior compared to large investors. Retail wallet types including shrimp, crab, octopus, and fish sold about 550K ADA worth of NIGHT, while wallet types of large holders (dolphins, sharks, and whales) bought 2.232 million ADA worth of NIGHT. NIGHT's on-chain holders crossed 75K, adding 1,000 in the past week, suggesting the current drop may be short-term given the broader market weakness. The lack of cohesion among different holder groups contributed significantly to the token's decline.
