#CardanoDebate

🔔 **Cardano Debate – Will the ADA treasury turn into a liquidity gateway or a volatility trap?**

ADA experienced a sharp decline of ~6% after a split within the Cardano community regarding the proposal to use 100–140 million ADA from the treasury to support stablecoin liquidity within the system 🌐.

🔍 **Diverging Perspectives:**

Supporters, led by Charles Hoskinson, believe that this funding is essential to enhance DeFi and the treasury strategy without direct negative impact, using OTC deals and tools like TWAP.

Opponents warn of potential selling pressure resulting from the public disclosure of the amount, which could lead to an unwarranted price drop, and prefer issuing crypto-backed stablecoins without unloading ADA.

📉 Technically: The price dropped from ~$0.688 to ~$0.625, then rebounded to ~$0.641 with support channels appearing at ~$0.622–0.636, while the resistance level near $0.645 remains a barrier to full recovery.