Cardanos Ada -Token fell 6.01% to $ 0.6412, when the market responded to both macro -resolidality and a heated government debate on a proposed $ 100 million treasury allocation aimed at strengthening the defi ecosystem.
On Wednesday, the Taptools team asked its supporters at X, what they think of the idea of implementing $ 140 million (about $ 100 million) to provide liquidity to stablecoins such as USDM and help Power Cardano’s growing decentralized financial sector.
Not everyone is on board. The influential account @cardano_whale claimed that the introduction of 140 million ADA in sales pressure under the current market conditions would be harmful. He recognized the potential long-term defi benefit, but warned that government proposals are typically front-run by dealers, which means any public plan to sell ADA at $ 0.70 had to end up being sold at $ 0.50. Instead, he favored coining crypto-stacked stableecoins like obyusd to avoid direct sales pressure.
Cardano founder Charles Hoskinson pushed back strongly and called the sales pressure relates to a “false tale.” In his view, the Treasury could convert the 140 million ADA gradually over-the-counter or through algorithmic execution strategies as time-weighted average price (TWAP) orders to avoid market disorder. He emphasized that Cardano’s lack of stableecoin depth is holding back the ecosystem and this initiative could not only tackle this gap but also generate sustainable, non-inflationary revenue for the Treasury.
Society remains shared. While some see it as a bold step to finally give Cardano defi a stable foundation, others consider the plan as premature, especially given the current market weakness and ADA’s inability to hold over $ 0.68. The debate has become a lacquer test for how Cardano balances long -term growth with almost term token economy.
Technical analysis highlights
- ADA fell from $ 0.688 to $ 0.625 before jumping back to $ 0.641, a decrease of 6.01% on the day.
- Volume spiked during the collapse between 01: 00-02: 00 UTC, which establishes strong support for $ 0.622.
- A 58% recovery from the low formed a rising channel where higher low points to mild accumulation.
- Resistance to $ 0.645 has closed upward momentum for now, with buyers who entered almost $ 0.636.
- Volume peaks at. 13:50 and 14:00 UTC (2.6 m and 5.7 m ADA) suggests renewed interest but limited follow -up.
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