The Cardano (ADA) currency has seen fluctuations recently, amid mixed signals from major investors.
While previous reports indicated that whale holdings of the currency 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.
This contradictory behavior contributed to increased selling pressure on the currency.
The price of ADA dropped from $0.71 to less than $0.62, before recovering relatively to $0.636.
Warnings have increased about the possibility of 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 influence, represented by the recent proposal of Cardano's founder, "Charles Hoskinson," who called for swapping $100 million of ADA for Bitcoin and stablecoins to enhance decentralized financing on the Cardano network.
Despite the criticisms raised by this proposal, "Hoskinson" quickly denied its negative impact, affirming a strong institutional demand for ADA outside trading platforms that is sufficient to absorb any potential selling pressure.
He considered that the development of the DeFi ecosystem on Cardano would compensate for any temporary withdrawals from the treasury.
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