Midnight price faces THIS test after 11% decline – Can NIGHT recover?

Midnight [NIGHT] extended its decline over the past 24 hours as sellers maintained control despite a sharp increase in market activity. At the time of writing, NIGHT traded near $0.0309 after falling more than 11%, while its market capitalization slipped to roughly $513 million. However, trading volume moved in the opposite direction and climbed 29.37% to over $60 million. The divergence suggested traders remained highly engaged even as the price weakened. Rising volume during a decline often reflects stronger participation from market participants, and NIGHT appeared to fit that pattern. Are investors quietly buying NIGHT? Exchange flow data painted a different picture beneath the surface. Recent spot activity showed $9.25 million in inflows compared with $17.96 million in outflows. The imbalance left NIGHT with a net outflow of roughly $8.7 million. Unlike inflows, which increase available supply on exchanges, outflows generally indicate that holders have moved assets away from trading platforms. Despite the ongoing decline, investors are steadily removing tokens from exchanges, a behavior that often signals reduced intent to sell immediately. Nevertheless, the market did not reward those withdrawals with higher prices during the observed period. Instead, NIGHT continued trading near local lows. However, the persistence of outflows suggested that some participants still preferred accumulation or longer-term holding over active distribution. Source: CoinGlass NIGHT tests a familiar support zone NIGHT’s price action remained trapped beneath key resistance after another failed recovery attempt. The token traded around $0.0310 and continued defending the support region near $0.0297. Earlier in June, buyers pushed the token toward the $0.0400 resistance area, yet that advance quickly lost strength and produced a series of lower highs. The structure then shifted back in favor of sellers. RSI reinforced that weakening trend. At press time, the indicator fell to 44.13 while remaining below its moving average near 46.11, showing that bullish strength had faded considerably. However, RSI still held above oversold territory, which suggested sellers had not reached exhaustion levels. If support near $0.0297 continues to hold, buyers could attempt another recovery toward $0.0350. Otherwise, a breakdown would likely strengthen bearish pressure across the short term. Source: TradingView Liquidity gathers on both sides Liquidation data revealed that traders concentrated leverage around several nearby price zones. The heatmap showed visible liquidity clusters beneath the current price around the $0.0300–$0.0310 region. Those levels aligned closely with the support area highlighted on the daily chart. Meanwhile, additional clusters appeared above the spot price near $0.0320, followed by larger concentrations around $0.0335 and $0.0350. Such conditions often create competing short-term targets because price frequently seeks areas where large numbers of leveraged positions exist. Rather than favoring a single direction, the heatmap suggested that NIGHT traded between important liquidity pools. A sweep below support could occur before buyers attempt to challenge the more substantial liquidity concentrations located above the current price. Source: CoinGlass If buyers maintain control of that level, price could revisit the liquidity cluster around $0.0320 before challenging $0.0350. However, failure to defend support would likely expose NIGHT to another round of downside pressure before any meaningful recovery develops. Final Summary Exchange outflows continued to exceed inflows despite NIGHT’s recent price weakness. Support near $0.0297 remained crucial as liquidity gathered around key levels.