$ADA dropped by about 6% following the division of the Cardano community over the proposal to withdraw 100 to 140 million ADA from the treasury to support the liquidity of stablecoins within the system.

🔍 Controversy 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 minimize impact through OTC transactions and tools like TWAP.

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

📉 Technically:

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