Cardano's recent price movements have been marked by a steady decline, signaling a short-term bearish trend that has left investors concerned. Despite its attempts to recover, the cryptocurrency's price has failed to break out of the symmetrical triangle pattern, instead dropping to $0.40 and indicating a bearish turn. This move has raised concerns among investors and analysts who were hoping for a bullish breakout.

The lack of participation in Cardano's market activity is a significant factor contributing to the bearish trend. The price daily active addresses divergence suggests that there isn't enough market engagement to support a quick recovery. This lack of active participation could mean that traders are hesitant to re-enter the market, possibly anticipating further declines or uncertain about the future price direction.

On-chain metrics, however, reveal strong support levels and increased DeFi activity, hinting at potential resilience and future recovery. The total value locked in Cardano's DeFi applications has surpassed previous records from the 2021 bull market, indicating burgeoning interest and confidence among DeFi users. Large-scale investors, who hold a significant portion of the total supply, are also actively participating in the market, with $34.46 billion in large transactions over the past week.

Despite the bearish trend, Cardano's price is conflicted, and the third-generation cryptocurrency is seeing an opportunity to accumulate. The short-term Market Value to Realized Value ratio stands at -12%, indicating losses, which may lead to a surge in buying pressure. Historically, ADA MVRV between -6% and -18% usually signals the start of rallies, marking an opportunity zone for accumulation.

As Cardano navigates through its current consolidation phase, market participants should closely watch technical indicators and on-chain metrics for a more informed trading strategy. While the short-term outlook appears bearish, the resilient on-chain support and increased DeFi activity provide a promising outlook for future price movements.