Cardano sinks 6% in the midst of fierce debate over $ 100m Treasury plan to boost defi liquidity
Cardano’s ADA token declined 6.01% to $ 0.6412 as the market reacted to both MacRO volatility and a heated management debate with a suggested $ 100 million allocation of wealthy ark aimed at strengthening the defi ecosystem.
On Wednesday, the Taptools team asked its followers at X what they were thinking about the idea of deploying 140 million ADA (around $ 100 million) to provide liquidity for stablecoins such as the USDM and help the growing decentralized Cardano finance sector.
Not everyone is on board. The influential account @cardano_whale has argued that the introduction of 140 million ADAs to the seller of pressure under current market conditions will be detrimental. He acknowledged the potential long -term benefit of the DeFI but warned that management measures were usually run by entrepreneurs, which means that any public plan to sell ADA for $ 0.70 could end with supply sold at $ 0.50. Instead, he favors the mininting stablecoins supported by crypto such as obyusd to prevent direct pressure sale.
Cardano founder Charles Hoskinson pushed out loud, calling the seller of pressure involving a “false narrative.” In his view, The Treasury can convert 140 million ADAs to gradually over-the-counter or through algorithmic implementation techniques such as weighted average price (TWAP) to prevent market disruption. He emphasized that Cardano’s deficiency of Stablecoin’s depth prevents the ecosystem, and this initiative not only meets the gap but also produces sustainable, non -inflationary income for the ark.
The community remains divided. While some see it as a brave step to finally give Cardano Defi a solid foundation, others have viewed the plan as early as it is, specifically given the current weakness in the market and ADA’s inability to hold more than $ 0.68. The debate has become a litmus test for how Cardano balances long-term growth with a close economic economy.
Technical assessments
- ADA fell from $ 0.688 to $ 0.625 before bouncing back to $ 0.641, a 6.01% fall in the sun.
- Volume spiked during the breakdown between 01: 00-02: 00 UTC, which established strong support at $ 0.622.
- A 58% recovery in lows is formed by a rising channel, with higher lows pointing to mild accumulation.
- The resistance of $ 0.645 has leased up the upward momentum for now, with consumers stepping to close to $ 0.636.
- The volume of the peaks at 13:50 and 14:00 UTC (2.6m and 5.7M ADA) suggest updated interest but limited compliance.
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