#CardanoDebate
🔔 **Cardano Debate – Will the ADA treasury turn into a liquidity door or a volatility trap?**
The ADA currency experienced a sharp decline of ~6% after a split within the Cardano community over a proposal to use 100–140 million ADA from the treasury to support the liquidity of stablecoins within the system 🌐.
🔍 **Conflicting 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 sell pressure resulting from the public disclosure of the amount, which could lead to an unjustified price drop, and prefer issuing crypto-backed stablecoins without liquidating ADA.
📉 Technically: The price dropped from ~$0.688 to ~$0.625, then rebounded almost 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.
