- Cardano is holding above a key demand zone, signaling short-term bullish momentum toward $0.40
- The $0.40 level remains a major psychological benchmark that could influence trader behavior
- Ripple CTO David Schwartz’s acknowledgment of Midnight has fueled speculation around privacy and cross-chain collaboration
Cardano is starting to show fresh signs of strength, holding firmly above a key demand zone that traders have been watching closely. Market analyst Kamran Asghar pointed out a clear bounce from this support area, a move that often hints at short-term bullish momentum. For now, attention is drifting toward the $0.40 level, a round number that tends to matter more than charts sometimes admit.
Demand zones are typically areas where buyers consistently step in, absorbing sell pressure before prices slip too far. Cardano’s ability to stay above this level suggests solid technical backing, and Asghar notes that bounces like this often come before upward continuation. At the time of writing, ADA is trading near $0.3527, leaving room for a potential push higher if momentum holds.
Why the $0.40 Level Matters for ADA
The $0.40 mark isn’t just another price target, it’s psychological. Traders often react more aggressively around clean, round numbers, sometimes without even realizing it. A sustained move toward or above $0.40 could trigger renewed buying interest, especially from short-term participants waiting for confirmation.
If ADA can build volume while approaching that level, confidence may start to rebuild after months of uneven price action. Still, any failure to hold current support would likely slow things down again, so the next few sessions matter more than they seem.
Ripple CTO Draws Attention to Cardano’s Midnight Sidechain
Beyond price action, Cardano is also seeing renewed attention on the development side. Ripple CTO David Schwartz recently acknowledged Midnight, Cardano’s privacy-focused sidechain, sparking fresh conversation across the crypto space. Midnight’s native token, NIGHT, debuted earlier this month and has already caught the eye of both traders and developers.
Midnight is designed to bring stronger privacy and security features to the Cardano ecosystem, particularly for DeFi applications that require sensitive data handling. Schwartz’s engagement, even if brief, has fueled speculation about possible Ripple–Cardano collaboration down the line, or at least growing alignment between major blockchain ecosystems.
Midnight’s Role in Cardano’s Long-Term Vision
Cardano founder Charles Hoskinson has been a vocal supporter of Midnight, positioning it as a scalable solution for private transactions and secure smart contract execution. Rather than competing with Cardano’s mainnet, Midnight is intended to complement it, expanding functionality without sacrificing transparency where it’s needed.
Hoskinson recently addressed concerns that Midnight could distract from Cardano’s core mission. During a livestream, he emphasized that the upgrade is meant to strengthen the network, not dilute it, and suggested it could expand Cardano’s DeFi ecosystem by as much as tenfold. As privacy and interoperability become bigger priorities across crypto, developments like Midnight are starting to feel less optional and more inevitable.
