Cardano Dan's Newsletter - Issue #156

Fear or Greed

Quote of the Day

“Be fearful when others are greedy and greedy when others are fearful.”

― Warren Buffett

I’ve used this quote before but it’s too appropriate to the current markets not to use again.

Far too many people buy when people are greedy (candles have been green a long time) and sell when people are fearful (candles have been red a long time).

In investing, you need to train yourself to make objective decisions and avoid emotional ones. Now is an important moment to distinguish between the two.

In The News

1. News broke over the last 24 hours that there’s a new heavily mutated variant of COVID has been identified. Stock and crypto markets took a beating as a result of this news.

2. A plot of Axie Infinity land sold for $2.5 Million! Axie says this was the “largest sale ever for a single plot of digital land".”

Cardano Updates

1. Speaking of virtual land sales… a single Pavia parcel of virtual land on Cardano sold for over $50,000!

   David King @theuttermost

   🚨 #cNFT Market Alert 🚨 😳🤯... @Pavia_io parcel (-18, -18) sold for an incredible ₳31,000 (12 ETH / $51,100), a new ATH record for a single plot. 📈💰 This #Cardano #NFT plot cost $199.60/m², which is more expensive than the avg cost of urban land in Spain ($155/m²) 🇪🇸😅

   

2. Cardano’s November Monthly Update dropped yesterday. I’m still working through it because of the holiday, but it is always the place to get great updates on development and partner progress on Cardano.

Technical Analysis / Price Discussion

I tweeted this about price action today

Card₳no 🐂 Dan 🇺🇸 🇯🇵 🇪🇹 🇹🇿 🌑 ADA @CardanoDan

Strong belief that #Cardano $ADA holds the $1.50 level from technical perspective. Fundamentally, matter of time before stimulus and relaxing are announced to combat the new variant. DEXs launch soon too.

Let’s dig into the technical perspective:

• $1.50 served as very difficult resistance to break from February to May 2021

• You can see it in the Volume Profile indicator on the right. This becomes a substantial level of support at this point

• ADA markets are oversold on the daily timeframe

Even if crypto markets and ADA started into a bear market (I don’t believe they have), there is a very good reason to believe that $1.50 will hold as support.

Assuming it does, I expect a retest of the 50D EMA in quick order (orange line) and likely a retest of the downtrend resistance (diagonal red).

Assuming the bull cycle is still active (my primary case), I believe we’ll see more than a retest of those levels. But first, we see if $1.50 holds as support.

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.