Coinbase ADA Reserves Jump 462% as Bitcoin Cools and Altcoins Heat Up

The cryptocurrency market is currently cooling after a powerful rally that pushed Bitcoin to a new all-time high of $125,559 on October 5, 2025. With Bitcoin entering the overbought zone on daily charts, experts are watching for liquidity rotation into altcoins, a common cycle in past rallies.

Historically, Bitcoin leads market uptrends, followed by capital rotation into altcoins once BTC overheats. Indicators like the daily RSI show that most altcoins still have room to run, unlike Bitcoin. This pattern has everyone eyeing coins outside the top two as possible next movers.

Among top altcoins, Cardano (ADA) has drawn attention after Coinbase doubled down on its wrapped ADA product (cbADA) on Base. Coinbase’s Proof-of-Reserves shows its ADA holdings soared from 1.7 million to 9.56 million ADA in one month, that’s a 462% jump.

This sharp rise points to institutional accumulation and growing utility for ADA across chains. At the same time, Coinbase’s XRP reserves fell from 970 million to 99 million, showing a shift in institutional preference.

Cardano’s price is up fourfold from its June 2023 bear market lows. While it has not matched the gains of smaller-cap tokens, ADA remains one of the strongest performers among blue-chip assets.

Exchange data shows that over $2.5 billion worth of ADA has been removed from trading platforms in the past year alone, equal to more than 10% of circulating supply. This long-term trend, shows conviction among holders and hints at the possibility of a future supply shock.

Cardano tends to perform best during phases of strong retail inflows. With Bitcoin’s record high drawing mainstream attention again, retail searches for crypto are rising. ADA is still trading below a key resistance trend line that has held since December 2024. To push higher, ADA needs to break above the $0.96 to $0.97 zone.

If it manages that, the next targets sit around $1.18, with further upside potential toward $1.79. For now, the upward trend remains intact as long as the token holds recent support levels.

Analyst Michael van de Poppe also expects Bitcoin to see a short-term pullback to reset leverage, followed by a period of consolidation. During this time, Ethereum is likely to outperform Bitcoin, and altcoins like ADA could experience a strong upward move as capital rotates into the broader crypto market.