Midnight (NIGHT) token price is up by 9% today, July 22, to trade at $0.021 at the time of writing. These gains come shortly after more than $13 million worth of NIGHT tokens were stolen in a hack on the Wanchain bridge that links Cardano to BNB Chain.
The hack pushed the price of NIGHT to an all-time low of $0.015, but an analyst now forecasts that the token could be on the verge of a massive recovery.
NIGHT Token Rallies as Analyst Eyes More Gains
The NIGHT token crashed on July 21 after concerns emerged that the hacker who stole 515 million NIGHT from the Wanchain bridge hack would dump them in the market.
The resulting selling pressure pushed the price of NIGHT to $0.015, but analyst Crypto Dossier now says that this drop created a chance for traders to buy.
The analyst notes that the 39% increase from the record low price of $0.015 to $0.021 between July 21 and July 22 suggests that the NIGHT token is resilient and it could see more gains in the long-term.
“The community saw the dip as an opportunity, bought aggressively, and pushed it back up ~30% from the lows already… This kind of quick recovery shows real strength for the long term,” the analyst said.
This forecast comes after Midnight said it is in talks with exchanges to freeze the stolen NIGHT tokens, with such a move set to reduce the selling pressure.
Despite the optimism, NIGHT price is down by 98% from the all-time high of $1.81.
NIGHT Price Prediction as Bull Flag Pattern Forms
The two-hour chart for the NIGHT token shows a bull flag. This pattern usually suggests that the price is cooling off after the recent gains.
This bull flag appeared as the price of NIGHT moved from $0.015 to $0.022. If the price closes above the obstacle at $0.022, it could gain by 63% and reach $0.0358.
The CMF reading of 0.13 suggests that the buying pressure is more than the selling pressure, and this could aid NIGHT token price in closing above the resistance of the bull flag.
However, if more traders sell to take profits, NIGHT price could move below the support of the bull flag at $0.021. This drop could invalidate the bull flag, and NIGHT could drop to the July 21 low of $0.019.
The MACD line that is negative suggests that the momentum is still favoring bears despite NIGHT gaining by 39% from its all-time low of $0.015. This negative sentiment likely stems from escalating geopolitical tensions that are weighing on crypto prices.
NIGHT’s Open Interest Soars Amid Surging Short Bets
Data from Coinglass shows that the open interest for the NIGHT token has increased by 10% today, July 22, to $23 million at the time of writing.
This OI has also climbed from $15 million on July 19 to $25 million on July 22, marking its highest reading since June 4.
The OI is likely rising because of short sellers who are opening new positions to bet that the price of NIGHT token might drop again. This rise in short sellers is shown by the funding rate that has a reading of -0.021.
The long/short ratio for the NIGHT token has also dropped to 0.52 on Binance, which shows that there are more short sellers than long buyers.
This suggests that despite analysts flipping bullish that NIGHT might recover after the recent crash, futures traders are predicting that the token will crash.
