Cardano (ADA) recently broke above a down trendline, giving holders a breath of fresh air.
Cardano is undoubtedly one of the biggest victims of the current bear market. At the time of writing, the token is trading at USD 0.3186, up just 0.74% on the day and down 89.81% from its all-time high in September 2021.
Indeed, the price of Cardano (ADA) is starting to break just above a downtrend line it has been following for two weeks.
While this move gave holders a small glimmer of hope, it is crucial for the ADA price to break above the $0.330 resistance level and turn it into support.
38.58 billion ADA moved
The short-term volatility of Cardano’s price seems to have brought the old coins back into circulation. Indeed, ADA’s Age Consumed indicator shows that a significant number of tokens have moved following the recent market downturn.
As of November 24, more than 38.58 billion ADA were transferred on-chain.
Spikes on the Age Consumed chart indicate the movement of large amounts of ADA after a long period of inactivity. It could be a massive redistribution or resale of assets.
That said, the net realized profit/loss indicator (NRPL) has been in negative territory for the past six months. As a reminder, the NRPL indicator calculates the profit and loss of all coins sold during a given period.
Cardano: TVL down 83%
The non-fungible token (NFT) market contributes significantly to Cardano’s price action. According to a report published at the end of October, Cardano is the third largest blockchain in terms of NFT transactions.
The total NFT trading volume (in dollars) fell sharply from June and July 2022. While trading volumes remain above average, the number of unique addresses that bought more than $100,000 in NFT has dropped significantly.
Recent announcements from the Cardano development team, such as the launch of the algorithmic stablecoin Djed in January 2023, are giving investors hope. That said, the network’s Total Locked Value (TVL) continues to fall.
According to DefiLlama, Cardano’s TVL currently hovers around $53.46 million, down 83% from its all-time high.
Nevertheless, medium and short-term on-chain indicators point to slow growth in the price of Cardano. If the token manages to move above $0.33 initially and then $0.40 later, it could turn green again. However, if the price of ADA falls further, it will likely fall below $0.30.
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