Cardano fell 1.54% to $0.247 over 24 hours as softer inflation data cooled expectations for additional Federal Reserve rate increases. The decline stood in contrast to a strong rally in Midnight's NIGHT token, which surged more than 20% during the same period.
U.S. headline PCE inflation, the Fed's preferred inflation measure, registered 3.4% annually in August, undershooting market expectations of 3.7%. Core PCE inflation, which excludes food and energy, came in at 3.0%, below the anticipated 3.3%. July's headline and core readings were also revised downward by 30 basis points each.
The inflation miss shifted market sentiment on monetary policy. October rate hike probabilities fell to near 35%, down from roughly 45% before the data release. Bitcoin traded near $83,500, Ethereum around $2,670, and XRP remained below $1.50 during the Wednesday market update.
NIGHT Token Gains Ground
NIGHT climbed 20.20% to $0.0377, with trading volume surging 84% to $82.2 million. The token's weekly advance exceeded 60%. Near-term technical levels showed sustained activity above $0.035 could bring $0.040 into view, while support risks a retreat toward $0.032.
Cardano founder Charles Hoskinson highlighted Midnight's capabilities, stating the platform can offer functionality beyond comparable privacy-focused blockchains. Recent integrations with Dynamic and VIA Labs support wallet onboarding and cross-network communication.
Cardano Futures Exposure Declines
Cardano's weakness coincided with a contraction in derivatives markets. Futures open interest fell roughly 9% over the past week, dropping from $1.99 billion to $1.81 billion, indicating reduced leveraged involvement. The enthusiasm around NIGHT had not yet translated into comparable gains for ADA.
Technical Outlook
Cardano faced resistance at $0.250. A confirmed breakout above this level could open a move toward $0.270, approximately 10.2% higher. Beyond that, $0.300 remains the next major resistance level. Initial support sits at $0.230, with $0.200 marking a key breakdown threshold.
The four-hour RSI stood at 47.07, below 50 and indicating limited bullish momentum. The MACD and signal lines remained near each other, both reading approximately -0.001, suggesting subdued technical momentum for a near-term recovery.
