Market Turmoil and Arrival of Delegators

After a noticeable dip in crypto prices at the start of the year, another round of price dips has arrived bringing Cardano ADA price to the levels it was almost a year ago. Is it time to pack up and run? Read on to find out.

Another Market Dip

Despite multiple online messages complaining about the price of Cardano, everyone should first step back and look at what is happening to the wider market. A brief look will show you that multiple instruments from stocks to ETF to unit trusts to crypto are all going down. Therefore, wherever you put your investment in, it will be down right now and this is not specific to Cardano.

So what is the cause of this recent dip? As with everything that moves markets, there are always multiple factors. The biggest ones that come to mind are:

1. Fed Easing – the US Fed announced they will slow down their large scale purchase of assets which had helped spur the economy during this period of economic downturn. This will in turn increase interest rates and bring stock values lower over time.

2. Geo-Political tension – the threat of an invasion of Ukraine by Russia caused panic in the markets due to the uncertainties that will be brought about by new sanctions and the possible war.

There are other factors specific to Cardano that may have affected price movement but for this article, I wanted to concentrate on the wider factors that affect all markets— not only crypto.

So what should you do as an investor?

History has proven time and again that markets always recover from economic downturns even if it is caused by wars or worldwide pandemics. If you have spare cash, now is a good time to invest. As it is highly likely that we have not yet seen the bottom of this dip, I suggest you do Dollar Cost Averaging (DCA) onto the investment that you are looking at. This means putting in a small amount of investment on a regular basis as opposed to investing a lump sum in one go.

As it is currently a bear market, look for investments with strong fundamentals that will let them weather through these difficult times. If you are looking at cryptocurrencies, look for strong communities, active development, leadership team, road maps, track record, sustainability and future potential. Cardano is strong in these fields but do your own research and don’t take my word for it.

Cardano is a long investment. It has gone through 3 years of bear market when it’s price went below 10 cents after reaching a high of above 1 dollar in 2017. This is not the first bear market it is weathering and it won’t be the last. If you believe in its fundamentals, hold on to your investment and DCA if you have spare cash. A few years from now, you will be glad you did.

It is not all doom and gloom. In the last week, WISH Pool was fortunate enough to have an influx of amazing new delegators. This influx has doubled the number of delegators to more than double. We are infinitely grateful to all the delegators who have decided to join our pool. In appreciation and to celebrate the arrival of our new delegators, we will double our donation and have signed up to to allow all our delegators to receive extra tokens if they wish. Thanks to everyone again for your support

WISH Pool is the creator of Cardano SPOT Check, an online resource for Cardano Stake Pool Operators for maintaining their nodes. We are actively helping several Cardano communities and were a recipient of the IOG delegation in 2021 and are currently a recipient of the Cardano Foundation delegation in 2022. If you like this article, we greatly appreciate if you will delegate your ADA to WISH Pool. You will be earning interest rewards while indirectly helping the lives of disadvantaged children. This is because WISH Pool pledges to give at least 10% of its own profit to educational charities so that successful students can help get their families out of poverty. Let’s help grow the community together!

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