Are major investors abandoning ADA due to the project's founder's proposals?
Cardano (ADA) has recently experienced volatility, amid mixed signals from major investors.
While previous reports indicated that whale holdings increased by about 120 million ADA within 48 hours, analyst Ali Martinez revealed that they later disposed of more than 270 million ADA in a week, equivalent to about 170 million dollars.
This contradictory behavior contributed to increased selling pressure on the coin.
ADA's price fell from $0.71 to less than $0.62, before recovering somewhat to $0.636.
Warnings have increased about the possibility of a continued decline to the $0.5 level if the head and shoulders pattern is not broken.
Although geopolitical tensions represent a clear external factor in the market decline, some analysts pointed to an additional internal influencer, represented by the recent proposal from Cardano's founder, Charles Hoskinson, who called for swapping $100 million of ADA for Bitcoin and stablecoins to enhance decentralized finance on the Cardano network.
Despite the criticisms this proposal has raised, Hoskinson quickly denied its negative impact, asserting that there is strong institutional demand for ADA outside trading platforms that is sufficient to absorb any potential selling pressure.
He believed that the development of the DeFi ecosystem on Cardano would compensate for any temporary withdrawals from the treasury.
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