Do major investors abandon ADA due to proposals by the project's founder?

The Cardano (ADA) currency has recently experienced fluctuations amidst mixed signals from major investors.

While previous 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 relatively to $0.636.

Warnings have increased about the possibility of a continued decline to the $0.5 level 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 founder Charles Hoskinson, who called for exchanging $100 million 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, affirming that there is strong institutional demand for ADA outside of trading platforms sufficient to absorb any potential selling pressure.

He believed that developing the DeFi ecosystem on Cardano would compensate for any temporary withdrawals from the treasury.

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