Cardano Tests Support as $100M Treasury Move Eyes DeFi Expansion

• ADA hovers near support with weak volume, slowing bullish potential.
• Treasury diversification targets higher DeFi liquidity and stablecoin ratio.

Cardano (ADA) is showing early signs of a potential rebound despite current bearish sentiment. Cardano’s price climbed from $0.6291 to $0.6441 before correcting slightly to $0.6330, reflecting a 0.21% gain over 24 hours. 

By June 14, ADA declined to $0.6237, down 2.13% amid strong intraday selling. The token saw consistently lower highs and lower lows, suggesting bearish control. Multiple dips tested the $0.615 support level, which held firm through midday volatility.

Chart analysis shows ADA hovering close to the lower Bollinger Band at $0.6128. The next key resistance stands at $0.7632, with the midpoint around $0.6880 posing an immediate challenge if bullish momentum returns. 

However, trading volume dropped 46.33% to $589.3 million, reflecting reduced activity. Analysts say this could delay any breakout unless whale accumulation resumes. A recent build-up of 120 million ADA by large holders shows some interest, but fresh market momentum is still lacking.

Bears Dominate in the Short Term as Recovery Attempts Stall

Cardano faced downward pressure throughout the trading day on June 14. After reaching a high of $0.6366, the asset began a steady slide, struggling to stay above the $0.630 level. Short-term resistance now lies in the $0.636–$0.640 range. Without a break above this zone, ADA may remain under selling pressure.

Support continues to hold near $0.615, which has been tested multiple times. Market sentiment remains cautious, with traders waiting for a decisive reversal signal.

Analysts note that ADA’s price stays within a consolidation range, with no clear bullish or bearish breakout. Any upward movement would require increased volume and renewed participation from institutional holders.

$100M Treasury Shift Targets Stablecoin Growth and DeFi Strength

Cardano co-founder Charles Hoskinson announced a proposal to convert $100 million worth of ADA into Bitcoin and stablecoins. He outlined the plan during a YouTube livestream on June 12, describing it as a strategic effort to diversify Cardano’s treasury and enhance DeFi liquidity.

Currently, Cardano holds $31 million in stablecoins, while its total value locked (TVL) stands at $356 million. This places its stablecoin-to-TVL ratio below 10%, significantly lower than Ethereum’s 190% and Solana’s 110%. Hoskinson aims to raise Cardano’s ratio to between 33% and 40% to improve capital efficiency.

He suggested the transition be carried out over 30–90 days using TWAP (Time-Weighted Average Price) and OTC (over-the-counter) methods to minimize market disruption. The plan also includes establishing a sovereign wealth fund, governed by an elected board, to manage the converted assets and their yield.

This proposal, if approved, could mark a shift in Cardano’s strategic positioning within the DeFi space. It emphasizes asset diversification, liquidity stability, and governance-led growth.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.