Are major investors abandoning ADA due to the project founder's proposals?
Cardano (ADA) has experienced volatility 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 dollars.
This contradictory behavior contributed to increasing selling pressure on the currency.
The price of ADA dropped from 0.71 to less than 0.62 dollars, before recovering slightly to 0.636 dollars.
Warnings have increased about the possibility of a continued decline to the level of 0.5 dollars if the head and shoulders technical 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 founder "Charles Hoskinson," who called for swapping 100 million dollars of ADA for Bitcoin and stablecoins to enhance decentralized financing on the Cardano network.
Despite the criticisms this proposal raised, "Hoskinson" quickly denied its negative impact, asserting that there is strong institutional demand for ADA outside of trading platforms, 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.
