Cardano (ADA) price action offered some relief to the holders as the price broke above the bearish trend line.
Cardano price action has been sluggish of late, with ADA trading at $0.3186 at press time, up just 0.74% on the day. But the price is down 89.81% from its September 2021 all-time high.
From a technical perspective, Cardano price has been trading in a bearish trend line for more than two weeks. Although at press time, the price action was starting to free up.
While ADA price-breaking the bearish trend line offered some short-term relief for the holders, it is important for the price to establish above the $0.330 resistance level and then turn it into support.
old ada running
The recent short-term volatility in the price of Cardano brought some of the older coins back into circulation. The age consumption metric for ADA highlighted that following the price action slump, a notable amount of older ADA was moved.
Over 38.58 billion ADA was transferred on-chain on 24 November. Spikes in the age consumption graph indicate a large number of tokens moving forward after being inactive for an extended period of time. This could point to either a redistribution or a sale of some sort.
That said, the net realized profit/loss (NRPL) for ADA was largely anticipating losses for holders for the most part of the past six months. The metric calculates the net gain or loss for all coins spent in the time frame considered.
Low NRPL values indicated capital outflow. However, if the bulls can keep the price above the $0.330 level, there could be a reversal of a significant decline in NRPL. That said, with velocity showing a steady increase, it means the coin was being used more frequently in transactions over the specified time frame.
Cardano NFT and DeFi Space Still Dull
Activity in the NFT space often provides positive price momentum for the native tokens of the blockchain. A report in late October suggested that Cardano was the third largest non-fungible token (NFT) protocol by trading volume.
During that time the price of ADA was increasing rapidly. However, at the time of writing, the NFT landscape appears to be losing its sheen.
The total NFT trading volume (USD) is now very low compared to June and July 2022. While NFT trading volume remains above average, unique addresses that bought more than $100,000 of NFTs are falling.
Recent updates around the ecosystem, such as Cardano launching its algorithmic stablecoin Djed in January 2023, have kept investors engaged. However, the TVL of the coin continues to decline.
Data from Defilama suggested that ADA TVL fluctuated around the $53.46 million mark. Its TVL was down 83% from its all-time high.
Nonetheless, medium- to short-term on-chain metrics for ADA present a slow price increase. In the event of a short term bullish move above $0.33 and then $0.40 a reversal will be crucial. However, if ADA price declines further, Cardano could revisit the $0.30 lows.
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