ADA traded in a tight range on Thursday despite fresh liquidity, slipping nearly 7% over the past week and extending a broader downtrend that has weighed on altcoin sentiment. On-chain data, however, show larger holders steadily increasing exposure.
Analytics firm Santiment reports wallets holding between 100,000 and 100 million ADA added roughly 819.4 million coins over the past six months—about 1.6% of total supply—valued at over $200 million at current prices. That accumulation came amid a prolonged price decline: ADA fell more than 70% from a local high near $0.90 to lows around $0.26.
Such divergence—price weakness alongside whale buying—often attracts trader attention. Sustained accumulation by large holders during downturns is commonly read as long-term confidence, and the quiet buildup suggests some see current levels as a strategic entry.
Technically, analyst Zen Trades pointed to a breakout from a falling channel, suggesting structure may be shifting from bearish to bullish. A decisive reclaim of key resistance could accelerate upside and target higher zones.
Not all analysts agree. CryptoBullet offered a more cautious view, noting ADA has printed a lower high and wicked below previous cycle lows, leaving open the possibility of revisiting deeper support before a sustainable recovery.
Derivatives data add another layer: TapTools highlighted “trapped shorts” just above current prices. Crowded short positions can fuel a short squeeze if prices move sharply higher, increasing volatility as bearish traders are pressured.
As liquidity and risk appetite fluctuate across markets, ADA’s next decisive move may depend on whether momentum builds on the recent structural breakout or sellers reassert control at overhead resistance.
At press time, ADA traded at $0.2851, up 3.19% over the past 48 hours.