Cardano (ADA) price, a proof-of-stake blockchain platform, has seen notable price swings over the past day following a market correction. The altcoin trades have heightened volatility, with cryptos reflecting the recent ups and downs. ADA’s price stabilizes, as reports indicate the Cardano Foundation plans to sell $500 million worth of ADA tokens.
Cardano Price Dip Expected Amid $500M ADA Sell-Off
Cardano price volatility is anticipated as discussions unfold around a proposed budget requiring up to 500 million ADA in 2025. The budget proposal, if approved, could pressure the cryptocurrency market, sparking unease among holders and developers due to potential price impacts. Critics argue this allocation risks devaluing Cardano, even if the sale is gradual.
The projected treasury income for Cardano in 2025 stands at 334 million ADA, urging community members to push for a balanced budget that doesn’t exceed incoming revenue. Advocates for fiscal discipline propose allocating only 50% of treasury funds to Intersect, a facilitator for Cardano’s governance, reserving the remainder for future use and additional projects.
I’ve taken the time to review the #Cardano 2025 budget materials, and here is my take
1⃣ 300 – 500 Million $ADA is too much of an ask for any entity for the 2025 budget.
Even if this amount of ADA is not sold all at once, opening up ~500 million ADA to be sold will have… https://t.co/9taQdKJuer pic.twitter.com/KFpbu7Q9uM
— GAIA Stake Pool Make a Difference SPO & DRep (@GAIAstakepool) November 4, 2024
Intersect’s role is central; the organization will handle the budget and ensure projects meet quarterly milestones. It will also hedge ADA by converting it to stablecoins for payments. However, some suggest limiting Intersect’s power by preventing it from staking or voting with treasury Cardano to maintain ecosystem balance.
Calls are growing for a transparent, detailed budget, especially if additional funds are requested. With uncertainty around Catalyst’s inclusion in Intersect’s budget, Cardano’s future planning hinges on clear, community-centered decisions.
Will ADA Price Hit $0.7 Soon?
Cardano price is approaching a critical point, as traders weigh whether the asset will see a bullish reversal or continue its downtrend. The Cardano weekly chart highlights key resistance and support zones, suggesting potential price movements that could shape its short-term trajectory.
At the time of writting, the ADA price hovers at $0.3264, with a 3% in the past 24-hours. The altcoin faces significant resistance between $0.43 and $0.50.
If buyers fail to push past this resistance, the Cardano price could be at risk of further decline, with a crucial support zone around $0.23 acting as a potential floor. Breaking below this support could lead to market capitulation, signaling extended bearish sentiment.
On the other hand, a strong rebound from current levels could set ADA price prediction on a path toward its next major resistance, around $0.70. If buyers can establish momentum and break through the existing barriers, this would represent a substantial upside.
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Cardano’s price outlook hinges on community-driven financial decisions. A balanced budget and strategic spending could stabilize the token, but overspending risks further price declines. Clear, transparent planning will be essential for Cardano’s resilience and long-term growth.
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