According to reports from AMBCrypto, Midnight [NIGHT] has declined 12% this week amid broader market weakness driven by inflation concerns. The cryptocurrency has reached a crucial short-term support level at $0.041, which could provide bulls with a new entry opportunity if macro conditions improve. Since late September, NIGHT's price has been range-bound, trading between $0.052 and $0.041, with the current pullback testing this key support zone.
As reported by AMBCrypto, if the sideways trading pattern extends beyond the Fed rate decision at the end of October, the current price range could still offer trading opportunities. The analysis suggests that 26% upside potential could be achievable if the range low of $0.041 is successfully defended. However, the sideways outlook would be invalidated if price falls below the moving averages, which could flip the market structure bearish and expose downside risks to $0.035 or $0.029.
According to the analysis from AMBCrypto, liquidation data reveals significant upside potential in the short term. The largest liquidity pool on the 1-month liquidation heatmap is concentrated right above the $0.05 level, representing leveraged short sellers that could trigger a short squeeze. This upside liquidity pool suggests that in volatile market conditions, NIGHT could potentially reach the $0.053 target, which would activate the 26% upside potential scenario.
As reported by AMBCrypto, NIGHT's performance remains closely tied to the broader privacy cryptocurrency segment, which has trended lower and consolidated in recent weeks. The analysis indicates that if U.S. inflation worsens and drags Bitcoin lower, NIGHT may break below its short-term support and price range. A deeper risk-off move could be confirmed if the RSI slips below the neutral level and price dips below the moving averages, potentially exposing downside risks to the identified support levels.
