   
ADA continued to trade within a tight range on Thursday, with the price action confined to a narrow band despite the liquidity injected.
Notably, over the past week, the cryptocurrency fell nearly 7%, extending a broader bearish trend that has affected sentiment across the altcoin market. Despite the recent weakness, on-chain analysis indicates that larger portfolios have steadily increased their exposure.
Meanwhile, according to popular analytics firm Santiment, wallets with between 100,000 and 100 million ADA have collectively added approximately 819.4 million coins in the last six months. The analyst noted that this backlog represents approximately 1.6% of the total ADA supply and is valued at more than $200 million at current prices. Notably, this buying spree developed during a prolonged price decline, with ADA falling over 70% from its local high near $0.90 to recent lows around $0.26.
This divergence between price action and whale accumulation often catches the attention of experienced traders. Historically, sustained purchases by large holders during crises have been interpreted as a sign of long-term confidence. While retail sentiment appears cautious amid the current volatility, the quiet accumulation among major portfolios suggests some investors may view current levels as a strategic entry zone.
Additionally, market analyst Zen Trades flagged a breakout of a descending channel pattern, arguing that the asset’s structure appears to be changing from bearish to bullish. According to the analyst, a decisive recovery of key resistance levels could accelerate the bullish momentum and open the door to a continuation towards areas of greater resistance.
 
Meanwhile, some analysts have mixed opinions. According to analyst CryptoBullet, the outlook is more moderate, acknowledging that while an initial price target has been reached, the broader macro structure may still favor further declines. He argued that ADA has already made a lower high and is below previous cycle lows, leaving open the possibility that the token could revisit deeper support levels before establishing a sustainable recovery.
Additionally, the TapTools market analysis platform highlighted the presence of what he described as “trapped shorts” just above current price levels. In derivatives markets, crowded short positions can create conditions for a short squeeze if prices rise sharply. According to TapTools, each 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 changing risk appetite, ADA’s next decisive move could depend on whether bullish momentum is based on the recent structural breakout or if sellers regain control at overhead resistance.
At the time of publication, ADA was trading at $0.2851, reflecting a 3.19% rise in the last 48 hours.
