Cardano's ADA slid to $0.2039 inside a descending channel while Toto Finance asked the network's treasury for 22 million ADA to buy tokenized copper. Early DRep voting leaves the proposal far below its approval threshold.
ADA fell to $0.2039 on Sunday, roughly 28% below its October 6 peak of $0.2823. The drop comes as Toto Finance asked the Cardano treasury for 22 million ADA, about $5 million, to buy physical copper and tokenize it.
ADA stalls below the 200 EMA
Since October 7, ADA has traded inside a descending channel, and each recovery attempt has peaked below the previous one. The October 22 rebound stalled around $0.231, where the channel's upper line met the 200-period EMA, and ADA then dropped more than 10% over two days.
The 0.786 Fibonacci retracement level at $0.2100 broke on October 23 and is now the first ceiling overhead. The RSI stands at 32, above the 30 line that would put ADA in oversold territory. A close below $0.200 would open the way to $0.1903, the September low.
Toto's copper reserve plan
Toto Finance filed the treasury withdrawal proposal on October 15 for what it calls the Cardano Strategic Copper Reserve. The plan would buy COMEX Grade 1 copper cathodes, store them in a COMEX-approved warehouse near New Orleans and issue CuTT tokens, each representing one verified pound of metal.
Only 14.72 million ADA, about 67% of the request, would buy metal. At the proposal's illustrative purchase price of $6.73 per pound, the treasury breaks even only if copper sells near $10.06, a gain of about 49.4%.
DReps lean against, cap tightens
Cardano's budget rules set a 500 million ADA withdrawal cap for the period running to about July 2027, and 457.4 million ADA of it had been used by October 16. The copper reserve would therefore absorb about 51.6% of the remaining 42.6 million ADA.
Early DRep votes have run heavily against the proposal, leaving it far below the 67% approval threshold. Toto CEO Steven Gaertner is scheduled to defend the plan at a Cardano Governance Hour session on October 27 at 16:30 UTC.
Source: Crypto News Flash
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