Cardano’s token decreased 6.01% to $ 0.6412 as the market reacted both volatility and a heated governance debate on a proposed treasury allocation of $ 100 million aimed at strengthening the defi ecosystem.
On Wednesday, the Taptools team asked its followers about X what they think about the idea of deploying 140 million ADA (about $ 100 million) to provide liquidity to the stable as USDM and help boost the growing decentralized finance sector of Cardano.
Not everyone is on board. Influential account @cardano_whale argued that the introduction of 140 million ADA in the sale pressure in the current market conditions would be harmful. He recognized the potential benefit of long -term defi, but warned that governance proposals are usually front by operators, which means that any public plan to sell ADA at $ 0.70 could end that offer sold at $ 0.50. Instead, he favored stable with cryptographic support such as Obyusd to avoid direct sales pressure.
The founder of Cardano, Charles Hoskinson, delayed strongly, calling for sale pressure refers to a “false narrative.” In his opinion, the Treasury could convert the 140 million ada gradually free sale or through algorithmic execution strategies such as the average price orders weighted over time (TWAP) to avoid market interruption. He stressed that Cardano’s lack of depth is delaying the ecosystem, and this initiative could not only address that gap but also generate sustainable and non -inflationary income for treasure.
The community remains divided. While some see it as a bold step to finally give Cardano a stable base, others see the plan as premature, particularly given the current market weakness and Ada’s inability to stay above $ 0.68. The debate has become a fire test on how Cardano balances long -term growth with Token’s economy in the short term.
TECHNICAL ANALYSIS
- Ada fell from $ 0.688 to $ 0.625 before recovering at $ 0.641, a 6.01% drop in the day.
- Increased volume during breakdown between 01: 00–02: 00 UTC, establishing strong support at $ 0.622.
- A 58% recovery outside the minimums formed an ascending channel, with higher minimums pointing to a slight accumulation.
- The resistance to $ 0.645 has limited the promoting impulse for now, with buyers who take a step of $ 0.636.
- The volume peaks at 13:50 and 14:00 UTC (2.6my 5.7m Ada) suggest a renewed interest but limited follow -up.
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