Today, investors in the best cryptocurrencies Cardano (CRYPTO: NO) We finally see some green. As of 11:15 AM ET, Cardano’s value is up 4.8%, reversing part of its losses last week.
Over the past seven days, Cardano has remained down 12.1%, as investors price in headwinds related to transaction issues on major exchanges such as Coinbase Global (NASDAQ: currency). As reported yesterday, transfers to and from the crypto exchange have been disrupted for at least part of a few trading days, but these issues appear to have been resolved at the time of writing.
The resolution of these issues, along with the strong price action in the cryptocurrency market today, seems to be driving investor sentiment higher. Currently, the entire cryptocurrency market is gaining 2.9% over the past 24 hours, with coins like Cardano seeing significant gains today.
Cardano investors are rejoicing today thanks to the news that the Cardano Forest, a project managed by the Cardano Foundation, a non-profit organization associated with the management of the Cardano Network, has officially planted more than one million trees. As a proof-of-stake network, Cardano’s validation protocol is already among the greenest in the crypto world. By planting trees, Cardano has sought to become a carbon-negative web, a goal that today appears closer to reality than ever before.
Overall, Cardano investors have a number of reasons to be optimistic today. Retail investors can trade ADA coins, and sentiment in the cryptocurrency market in general is improving. Cardano is making huge strides towards becoming the “greenest” blockchain network on the planet. What do you not like?
However, serious headwinds continue to hit the crypto sector, primarily driven by the increasingly hawkish Federal Reserve. This environment has eliminated the risk of investors’ portfolios, as cryptocurrencies and stocks with the highest growth have seen a significant decline this year. In fact, the last 10 days have been the worst start for the cryptocurrency market since its inception.
Is now the time to be bullish or bearish on cryptocurrencies? This is the main question that many investors are asking now.
The answer probably depends on each investor’s time horizon. As with any kind of disruptive technology, the growth we are likely to see from the crypto world will not be linear. In fact, digital currencies are likely to remain among the most volatile assets anywhere. Accordingly, those with a risk averse mindset may want to avoid this sector altogether.
However, those who are more willing to risk might consider adding a portion of their holdings to cryptocurrencies like Cardano. This network has a number of catalysts for tokens that are looking attractive at the moment. In the long run, there is reason to believe that these stimuli can prevail over quick, short-term responses to macro stimuli by the market. Of course, only time will tell.
Today’s price action in the cryptocurrency market is a good respite for investors who have seen a sharp decline over the past month or so. However, volatility is likely to continue from here. Accordingly, buckling up and getting ready for a bumpy ride should be the mindset that investors have from here.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.