#CardanoDebate

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

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

🔍 **Diverging Perspectives:**

Supporters, 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 unwarranted drop in price, and prefer issuing cryptographically-backed stablecoins without dumping 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 .

ADAUSDT

Perpetual

0.6215

-2.18%

BNBUSDT

Perpetual

641.2

-1.73%