#CardanoDebate

Will the ADA treasury turn into a liquidity gate or a trap for volatility?**

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 stablecoin liquidity within the system 🌐 .

🔍 **Diverging viewpoints:**

Proponents, 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 unjustified price drop, preferring to issue crypto-backed stablecoins without unloading 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 .