Cardano traded near $0.35 on Dec. 31, marking a 60% decline for 2025 despite network upgrades. The token remained among the weakest performers in the large-cap sector while its Midnight sidechain attracted immediate market attention after launching earlier this month.

What Happened: Year-End Decline

ADA spent 2025 underperforming as Bitcoin and select altcoins benefited from exchange-traded fund inflows. The token failed to reclaim $0.50 throughout the year, trading in a low-volume range that kept it below key resistance levels. Midnight, Cardano's privacy-focused sidechain, launched Dec. 8 and briefly approached a $1 billion valuation.

The NIGHT token secured listings across major exchanges following its debut.

Ripple Chief Technology Officer David Schwartz publicly acknowledged Midnight's design in recent weeks. Charles Hoskinson previously suggested the sidechain could support XRP-related decentralized finance activity, though no formal partnership has been announced.

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Why It Matters: Technical Weakness

ADA compressed between $0.35 and $0.38 as 2025 concluded, with the supertrend indicator near $0.415 and the relative strength index unable to clear 50. Chaikin Money Flow showed limited buyer commitment, according to technical analysis. The token faces a critical support test at $0.34.

If that level fails, recent development upgrades and Midnight's launch may not prevent further downside in the near term.

A market stabilization into 2026 combined with sustained Midnight usage could trigger a sharp repricing from current compressed levels, though buying momentum remained absent as the year ended.

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