Cardano Dan's Newsletter - Issue #125
Success before Work
Quote of the Day
“The only place success comes before work is in the dictionary.”
— Vince Lombardi
It doesn’t really matter what your definition of success is; it takes work to achieve it.
Many people define success around accumulation of money, position, prestige, or something similar. Unfortunately, it seems there is a trend in society towards “entitlement.” In other words, I should just receive <whatever I think success is> because I deserve it.
The truth is, a lot of people work really hard at things and still aren’t “successful.” Why should someone that doesn’t work hard at something be “given” success? They shouldn’t.
I heard this saying from someone many years ago, “Work is a four-letter word.” (like most swear words.) When people don’t want to do the work because it’s hard, I like to remind them of that truth.
Key Takeaways from the Past Week
Monday - The Credit
Monday we covered the biggest news coming out of the Cardano Summit and pondered how a lot can be accomplished if you don’t care who gets the credit.
Wednesday - In Charge
Mid-week we considered the risks of putting the federal government in charge of the Sahara Desert and took stock of some major news related to said government.
Friday - Natural Progress
Friday’s newsletter talked about how liberty natural erodes over time and took note of a Grayscale report about Cardano. Following up on a WSJ video about Cardano earlier in the week. More and more coverage about Cardano is reaching consumers of mainstream news.
Technical Analysis
Cardano ADA gave the long-term green uptrend and the 100D EMA a very good test this week. Now it’s in the process of testing the shorter term downtrend resistance and the 50D EMA.
Price action is approaching the apex of these two trendlines and I expect a breakout one way or the other in the next 4 days. I have a moderate to high degree of confidence that the break will be up. But you know what they say… don’t count your chickens before they hatch.
Assuming an upward break, I think there are great chances of reaching my first take profit level - $3.90 - for this bull cycle that I identified all the way back on March 8th (white line on chart). Could see this happening in October or early November.
If we lose the uptrend line as support on higher timeframes (days) we would see a fast test of the 200D EMA and if that doesn’t hold, likely a test of the bottom of the bull cycle channel.
Looking at the crypto majors performance since March 2020 lows. Cardano still in a league of its own among majors.
Finally, looking at the market cap ratios against Bitcoin and Ethereum… Down week for Cardano ADA against Bitcoin and Ethereum.
Charles is reportedly taking a couple weeks off after the Cardano Summit before an Africa trip. The Plutus Application Backend is also not yet released and that is the next major step towards mass adoption of smart contracts on Cardano.
Africa and PAB are the next two news events that would likely propel ADA against BTC and ETH. That’s the fundamental view. But, when I looks at the technical side of things, it looks to me like ADA has found nice support on both pairs and could move higher sooner than those news events.
Will be interesting to see how things play out.
That’s it for the weekly recap. Hope you all have a great rest of your weekend!
Before You Go
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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