Midnight's token NIGHT has fallen approximately 16% in the past 24 hours, with a cumulative drop of over 21% in two days. This decline occurred amidst a general weakening of the crypto market, with the total market capitalization once approaching the $2 trillion mark.

The liquidation of long positions has been significantly amplified.

According to CoinGlass data, in the past 24 hours, NIGHT saw approximately $74,000 in long liquidations, while short liquidations amounted to only about $678. Over the past three days, long liquidations totaled over $170,000, while short liquidations amounted to approximately $4,000.

Since early May, long liquidation has been the dominant trend. The article states that this indicates buyers are under continuous pressure, and as prices decline, more leveraged long positions are forced to exit.

Key support level breached

Looking at the price action, NIGHT previously formed a double bottom around $0.03, then rebounded and rose above $0.03882. However, selling pressure subsequently swept through the buying liquidity in that area, and the price fell back into the range, proving the breakout invalid.

Technical indicators also weakened. On Binance, the Top Traders Long/Short Ratio fell from 2 to 1.29, indicating that large traders are tightening their positions. The Chaikin Money Flow also fell from 0.21 to -0.33, reflecting a faster outflow of funds.

Retail investors sell, large investors buy

On-chain distribution shows that the actions of different holder groups are not consistent. Retail wallets collectively sold approximately 550,000 ADA-denominated NIGHTs, while large wallets such as dolphins, sharks, and whales bought approximately 2.232 million ADA-denominated NIGHTs.

However, the number of NIGHT holders on-chain has exceeded 75,000, an increase of approximately 1,000 in the past week. The article argues that this means the current decline may not necessarily indicate a complete trend reversal, but it is still affected by the overall market weakness in the short term.