Cardano Dan's Newsletter - Issue #12

Coinbase Pro announces Cardano ADA listing

Welcome to the quick-hitting newsletter about Cardano, Crypto Trading, Blockchain, Monetary Policy, & Data Privacy.

I hope you enjoy this newsletter and that it provides you with some important insights into the days ahead for Cardano.

Quote of the Day

“The best things come to those who wait.”

―  1987 Heinz Ketchup Advertisement

We’ve been waiting a long time for a certain listing and that time has come! Good things are coming. (BTW, yes - that’s Matt LeBlanc!)

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Congratulations to the team at Cardano Kidz for another successful Pre-Sale!

This time, their S3 series Pre-Sale was so successful that people kept sending ADA after the sale was closed.

They are doing great work and I can’t wait for them to launch their Cardano-based NFT platform and the S4 series of NFTs.

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In the News

So this small announcement came out yesterday:

Coinbase Pro @CoinbasePro

Starting today, inbound transfers for ADA are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 9AM PT on Thursday March 18, if liquidity conditions are met. blog.coinbase.com/cardano-ada-is…

This is definitely one of the “birds” that Charles has been talking about for the past weeks. It is clearly a “liquidity event.” Coinbase is, by far, the most well-known and popular exchange in the United States.

Coinbase is a platform that onramps new users into crypto. In this way, it makes Cardano available to new users that are only comfortable buying crypto through Coinbase.

Cardano ADA spiked as much as 20% on the news.

Coinbase Effect

The effect that a Coinbase listing has on the price of a particular cryptocurrency can be so pronounced that it’s been given the name “Coinbase Effect.”

There’s been a fair amount of research done about the Coinbase Effect. Some key considerations of the research include:

• Performance after the announcement but before the listing

• Performance the day of listing

• Performance day after listing

Here’s one article that provides interesting insights into these considerations.

Fundamental Analysis

First of all, a Coinbase Pro listing is a first step towards a Coinbase listing and Coinbase Custody support. There are more dominoes to fall sooner or later related to this announcement.

However, it’s worth noting, Cardano isn’t your run of the mill blockchain project. As of the time of this writing, Cardano is the 4th biggest cryptocurrency by market cap, behind only Bitcoin, Ethereum and Binance Coin per CoinGecko.

This means that you shouldn’t expect Cardano to 2-3x just from this announcement. Keep your expectations reasonable. That’s too much of an instantaneous move for a $40 billion project.

Back to bullish considerations, the Coinbase listing is significant for another reason. Now that Coinbase has listed Cardano, it’s going to be VERY easy for them to list Cardano-based Native Assets. When Alonzo is released, be ready for Native Assets to be listed on Coinbase without the long wait we endured for ADA’s listing. This is bullish for Cardano.

Finally, this isn’t the only big news we’ve been expecting. I’m personally expecting major Africa news soon, perhaps as soon as Charles’ keynote address at the upcoming Blockchain Africa Conference 2021.

Can you imagine the ADA price action if Charles announces an African partnership on the same day ADA trading goes live on Coinbase Pro!?

Then there’s the 100 projects looking to move from Ethereum to Cardano, a potential Grayscale listing, and much much more.

Needless to say, I think the fundamentals for Cardano are very bullish. But, what else would you expect from someone named Cardano Dan?

Technical Analysis

Where does that leave us technically? You’ll remember that in my Monday newsletter, I laid out why I expected a big move up from Cardano ADA soon. Well, we just saw it. What next?

At time of this writing, Cardano ADA is sitting on top of the .382 fib retracement level (yellow line). I expect a move up to the 2018 high (white line), a retracement back towards (but not all the way to) the .382 fib, and then a strong move towards the new ATH around $1.49.

At that point, I could see a consolidation between ATH and .236 fib or a straight move through the ATH depending on the news related to the Africa Blockchain conference or some other bird landing.

Either way, I’m not messing around with trading Cardano ADA right now. It’s the easiest buy and hold with the greatest risk/reward profile around IMHO.

Tell Me What You Think

What do you think? I’d love to hear your thoughts, questions, and feedback below!

This newsletter is for entertainment and educational purposes. I’m not a financial advisor and you should do your own research and consult a financial advisor before investing in cryptocurrencies.