#CardanoDebate #CardanoDebate

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

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

🔍 **Two Diverging Perspectives:**

Supporters, led by Charles Hoskinson, believe 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 nearly to ~$0.641 with support channels appearing at ~$0.622–0.636, while the resistance level near $0.645 remains an obstacle to full recovery .$ADA