Liquidation wave slams Midnight [NIGHT] – is buyer confidence broken?

Midnight [NIGHT] is down about 16% in 24 hours, taking its two-day drawdown to more than 21%. The decline comes as the broader crypto market is on the brink of falling below a $2 trillion valuation, down from above $2.50 trillion as this week began. Loss of confidence across its ecosystem, liquidations, and retail selling added to NIGHT's slide.

According to data from CoinGlass, long traders were capitulating in style — their liquidations ran 109x larger than those of bears. In 24 hours, $74K in longs were closed while shorts only lost $678. From a broader view, longs worth more than $170K had been wiped out in just three days. During the same period, only $4K worth of sell orders had been liquidated. Long liquidations have been the dominant trend since the beginning of May, with bulls surrendering to bears who pushed NIGHT's price further down.

On the charts, NIGHT lost a slanting trendline support that formed after a double bottom pattern at around $0.03. Bulls defended this trendline until Midnight hit $0.042. Sellers then swept buy-side liquidity at $0.03882 and consolidated around that region. What followed was a loss of the trendline, and NIGHT crashed more than 21%. These events rendered the breakout above $0.03882 fake — a textbook liquidity grab before the real move.

The indicators backed up the selling activity. The Top Traders Long/Short Ratio Accounts fell from 2 to 1.29, suggesting large holders on Binance were offloading their NIGHT tokens. Meanwhile, the Chaikin Money Flow (CMF) dropped from 0.21 to negative 0.33 in four days, reflecting a market-wide capital outflow. NIGHT may be set for another drop to at least the $0.03 base that kicked off the previous rally, though the outcome depends on bulls holding the $0.03188 level.

Another factor in the drop was a lack of cohesion among holder groups. Retail wallets — shrimp, crab, octopus, and fish — sold off roughly 550K ADA worth of NIGHT. Meanwhile, the bigger players (dolphins, sharks, and whales) bought 2.232 million ADA worth of NIGHT, seemingly betting on a turnaround.

NIGHT's on-chain holder count crossed 75K, adding 1,000 in the past week. This hinted that the current drop may be short-term, even with the broader market looking wobbly.