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NIGHT Market Analysis: Derivatives Pressure Meets Spot Accumulation
Midnight (NIGHT), the zero-knowledge–based privacy blockchain, is experiencing a notable shift in market dynamics as short-term sentiment weakens while long-term interest remains intact.
Trading activity declined sharply over the past 24 hours, with volume falling by 50% to $3.97 billion at the time of reporting. This drop suggests that capital is rotating out of the asset rather than exiting entirely, as the overall investor base continues to expand despite short-term fluctuations.
Recent data shows that the number of investors fell from an all-time high of 6,880 to 6,110 on December 20, before rebounding to approximately 6,500. During this same window, NIGHT’s market capitalization increased by roughly $430 million. However, it later slipped to $1.52 billion from an intraday high of $1.94 billion, indicating near-term selling pressure.
Derivatives Activity Signals Short-Term Caution
Data from the derivatives market has been a key driver of recent price behavior. Open Interest declined by 12%, with approximately $12.7 million leaving the market, bringing total OI down to around $106 million. While declining Open Interest alone does not confirm bearish momentum, additional indicators provide further clarity.
The Open Interest–weighted funding rate turned negative, a development that typically reflects a higher concentration of short positions relative to long contracts. This suggests that downside positioning is primarily concentrated among derivatives traders rather than the broader market.
Spot Accumulation Remains Resilient
In contrast to derivatives activity, spot market data points to continued accumulation. On December 23, investors purchased $3.24 million worth of NIGHT, while total spot buying over the past five days reached $301 million. This sustained demand highlights ongoing long-term conviction among holders.
Supporting this trend, the Accumulation/Distribution indicator remains firmly positive, showing only a minor pullback. Total volume stands at 357 million, reinforcing the view that supply is tightening despite short-term volatility.
Liquidity Structure Favors Upside Bias
Liquidation heatmap data shows liquidity clusters positioned above the current price, with little downside liquidity below. Historically, such structures tend to attract price movement upward, aligning with the strong spot accumulation trend.
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