ADA traded in a narrow band on Thursday even as fresh liquidity entered the market, sliding roughly 7% over the past week and extending a broader downtrend that has weighed on altcoin sentiment. On-chain metrics, however, show large holders steadily boosting their positions.
Analytics firm Santiment says wallets holding between 100,000 and 100 million ADA accumulated about 819.4 million coins over the last six months — roughly 1.6% of total supply — worth more than $200 million at current prices. That accumulation occurred during a prolonged price decline: ADA dropped over 70% from a local high near $0.90 to lows near $0.26.
The disconnect between weakening price action and growing whale holdings tends to draw trader interest. When big addresses keep buying through downturns, many interpret it as a sign of long-term conviction; the quiet nature of the buildup suggests some investors view current levels as opportunistic entries.
From a technical perspective, analyst Zen Trades points to a breakout from a falling channel, arguing the market structure may be shifting away from bearish momentum. If ADA can decisively reclaim key resistance levels, upside could accelerate and open higher target zones.
Not everyone is optimistic. CryptoBullet offered a more guarded take, noting ADA has formed a lower high and produced wicks beneath prior cycle lows, leaving the door open for a revisit of deeper support before a reliable recovery can take hold.
Derivatives data add nuance: TapTools highlighted numerous short positions clustered just above current prices. Crowded shorts can amplify moves higher through a short squeeze, increasing volatility if prices turn sharply up.
With liquidity and risk appetite ebbing and flowing, ADA’s next decisive leg will likely hinge on whether momentum confirms the recent structural breakout or whether sellers regain control at overhead resistance.
At press time, ADA was trading at $0.2851, up 3.19% over the past 48 hours.