Will Midnight Boost Cardano Price and Ecosystem as Hoskinson Predicts? - The Market Periodical

Key Insights

• Cardano price has formed an inverse head-and-shoulders pattern.
• Charles Hoskinson believes that the upcoming launches will boost its permanence.
• He cited the upcoming Leios upgrade and the Midnight product

Cardano price has slumped to a crucial support level this week as Bitcoin and other cryptocurrencies pulled back. ADA token slumped to $0.53, down significantly from its all-time high of $3. Still, Charles Hoskinson believes that the upcoming Leios upgrade and Midnight launch will boost the ADA price and Cardano’s ecosystem.

Cardano Price Has Crashed Amid Ecosystem Challenge

The ongoing Cardano price plunge has mirrored the performance of other cryptocurrencies. Indeed, a closer look at the industry reveals that only a handful of coins, such as Zcash, Monero, and Dash, have experienced significant growth in the past few months.

However, Cardano has been a long-term underperformer as it has been left behind by other similar chains like Solana, BSC Chain, Hyperliquid L1, and Plasma.

While Cardano was launched over eight years ago, it has become a ghost chain with little activity in its ecosystem. For example, the Solana has 392 dApps in the decentralized finance industry and a total value locked of over $20 billion. It has $14 billion in stablecoin supply.

BSC Chain, Hyperliquid L1, and Plasma have a TVL of $11.2 billion, $6.2 billion, and $5.2 billion, respectively. The three have a stablecoin supply of $14 billion, $4.8 billion, and $1.5 billion.

Cardano, on the other hand, has a TVL of just $247 million and $30 million in stablecoin supply. Most importantly, the stablecoin supply has remained in this range for months, meaning that transactions are not growing.

Charles Hoskinson Sees Leios and Midnight as Major Cardano Price Catalysts

Charles Hoskinson, the combative founder, believes that the network growth is set to explode higher in the coming months. First, he believes that the ongoing Leios upgrade will be crucial for the network as it will boost the transaction speeds and scalability while preserving its decentralization.

Leios, which has been in development for years, will achieve this scalability by introducing parallel processing. In a statement, Hoskinson noted that this Leios upgrade will happen in 2026.

The other major catalyst for the Cardano price will be Midnight, a sidechain that Hoskinson believes will solve most of the challenges facing the network.

Midnight will be similar to other Ethereum layer-2 networks, such as Base and Arbitrum. The only difference is that it will focus on privacy by using a technology known as zero-knowledge (ZK) proofs.

Midnight will be an independent chain within the Cardano ecosystem, helping to ensure that transactions remain private. It will also have its native tokens: DUSK and NIGHT, with the latter going through the Glacier airdrop phase.

In a recent video, Hoskinson noted that Midnight will address most of the issues that Cardano currently faces. For example, he cited the hundreds of deals the network has made with some of the biggest developers in the crypto industry.

Many of these large players will be ready to launch their dApps on day one. Additionally, he anticipates that these creators will bring billions of stablecoins to the network.

Still, one can poke holes into his thesis as Midnight does not use Cardano’s technology. For example, Ethereum’s TVL does not include funds in its layer-2 networks like Base and Arbitrum.

ADA Price Technical Analysis

Technicals suggest that the ADA price has more downside in the near term. It has formed an inverse cup-and-handle pattern, which is a common bearish continuation sign in technical analysis. It is now hovering near the lower side of this pattern.

Cardano price has also moved below all moving averages, while the Average Directional Index (ADX) has jumped to 36, its highest level since August 1. This is a sign that the momentum is gaining steam. Also, the Supertrend indicator has turned red.

Therefore, the token will likely continue falling as sellers target the next key support level at $0.35. A move above the 50-day moving average will invalidate the bearish outlook.