The ADA coin witnessed a sharp decline of about 6% following a split in the Cardano community over a proposal to withdraw 100 to 140 million ADA from the treasury to support the liquidity of stablecoins within the system.

🔍 Debate between two teams:

Supporters led by Charles Hoskinson believe this step is necessary to enhance DeFi and expand the use of the treasury, with well-thought-out plans to mitigate the impact through OTC trades and tools like TWAP.

Opponents fear potential selling pressure due to the public announcement of the amount, which could cause excessive downturn, and prefer to focus on launching stablecoins backed by crypto collaterals instead of dumping ADA.

📉 From a technical perspective:

The price dropped from ~$0.688 to ~$0.625 before rebounding to ~$0.641. Currently, there are support channels at ~$0.622–0.636, while the resistance level stands at ~$0.645 as an obstacle to a full price recovery.