Cardano (ADA) 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.

Cardano (ADA) price movements have been closely observed throughout the past day, especially in light of a market correction and anticipation of a budget proposal. Here's a summary of the latest ADA price news, covering the sell-off discussions, budget plans, and price projections.

Cardano Price Dip Expected Amid $500M ADA Sell-Off

Cardano price volatility is expected to follow discussions around a proposed budget that might require up to 500 million ADA in 2025. This budget proposal, if approved, could put pressure on the crypto market, sparking concerns among both ADA holders and developers over the potential price impact. Some critics have argued that this allocation risks devaluing Cardano, even if the sale is made gradually.

Cardano's projected treasury income for 2025 is 334 million ADA, prompting some 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, and reserving the rest 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 pivotal; the organization will handle the budget and ensure that 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.

There have been increasing calls for a transparent, detailed budget, especially if additional funds are being requested. With uncertainty remaining over Catalyst's inclusion in Intersect's budget, clear, community-centered decisions will shape Cardano's future planning.

Will ADA Price Hit $0.7 Soon?

Cardano price movements are being closely monitored by traders, who are debating whether the asset will experience a bullish reversal or continue its downtrend. The Cardano weekly chart showcases key resistance and support zones, indicating potential price actions that could determine its short-term trajectory.

At the moment, ADA price encounters 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.

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