Are major investors abandoning ADA due to the project's founder's proposals?
The Cardano (ADA) cryptocurrency has experienced fluctuations recently, amid mixed signals from major investors.
While previous reports indicated that whale holdings of the currency increased by about 120 million ADA in 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.
ADA's price dropped from $0.71 to below $0.62, before recovering relatively to $0.636.
Warnings increased about the possibility of continuing the 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 by the recent proposal from Cardano's founder "Charles Hoskinson," who called for the exchange of 100 million dollars of ADA for Bitcoin and stablecoins to enhance decentralized finance on the Cardano network.
Despite the criticisms this proposal raised, "Hoskinson" quickly denied its negative impact, confirming a strong institutional demand for ADA outside of trading platforms sufficient to absorb any potential selling pressures.
He considered that developing the DeFi ecosystem on Cardano would offset any temporary withdrawals from the treasury.
