$ADA

#CardanoDebate

Are major investors abandoning ADA due to the proposals of the project's founder?

The Cardano (ADA) cryptocurrency has experienced fluctuations recently, amid mixed signals from major investors.

While earlier 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 increased selling pressure on the currency.

The price of ADA fell from $0.71 to less than $0.62, before recovering somewhat to $0.636.

Warnings have increased about the possibility of further decline to the level of $0.5 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 in the recent proposal by Cardano founder Charles Hoskinson, who called for swapping 100 million dollars worth 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 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.