ADA continued to trade within a tight range on Thursday, with price action confined to a narrow band despite injected liquidity. Notably, over the past week, the cryptocurrency has slipped by nearly 7%, extending a broader downtrend that has weighed on sentiment across the altcoin market. Despite the recent weakness, on-chain analytics indicate that larger wallets have been steadily increasing their exposure. Meanwhile, according to popular analytics firm Santiment, wallets holding between 100,000 and 100 million ADA have collectively added approximately 819.4 million coins over the last six months.
The analyst noted that this accumulation represents roughly 1.6% of the total ADA supply and is valued at over $200 million at current prices. Notably, this buying spree unfolded during a prolonged price decline, with ADA falling more than 70% from its local high near $0.90 to recent lows around $0.26. Such divergence between price action and whale accumulation often draws attention from seasoned traders. Historically, sustained buying by large holders during downturns has been interpreted as a sign of long-term confidence.
While retail sentiment appears cautious amid ongoing volatility, the quiet buildup among major wallets suggests that some investors may view current levels as a strategic entry zone. Additionally, market analyst Zen Trades pointed to a breakout from a falling channel pattern, arguing that the asset’s structure appears to be shifting from bearish to bullish. According to the analyst, a decisive reclaim of key resistance levels could accelerate upside momentum and open the door to a continuation toward higher resistance zones. Furthermore, market analytics platform TapTools highlighted the presence of what it described as “trapped shorts” just above current price levels.
In derivatives markets, crowded short positioning can create conditions for a short squeeze if prices rise sharply. According to TapTools, every incremental move higher increases pressure on bearish traders, potentially amplifying volatility if key resistance zones are breached. As the broader cryptocurrency market navigates fluctuating liquidity conditions and shifting risk appetite, ADA’s next decisive move could hinge on whether bullish momentum builds upon the recent structural breakout or whether sellers regain control at overhead resistance. At press time, ADA was trading at $0.2851, reflecting 3.19% boom in the past 48 hours.
Leave a Reply