Cardano Dan's Newsletter - Issue #34
April 24th, 2021 - Weekly Recap
Quote of the Day
“I can do this all day.”
― Steve Rogers / Captain America
This week we talked about big news events and how my values impact my approach to our NFT Keys proposal. Understanding your own values is important. Do you know what yours are?
Key Takeaways from the Past Week
Monday - Moving Forward Together
On Monday I shared about an important value of mine, alignment, and how that’s playing out in our new proposal for NFT Keys. Chris and I have been connecting with so many wonderful people in the Cardano community and look forward to connecting with you too!
Wednesday - Africa Special Soon
The Cardano community received exciting news mid-week with the announcement of an Africa Special on April 29th at 16:30 UTC! I discussed the timing and impact of the announcement.
Friday - Restrictive Tax Rates
The week ended with Capital Gains news stealing the excitement of the Africa Special news. We dug into why nearly doubling capital gains taxes is a really bad idea.
Technical Analysis
Cardano price action has been difficult for a lot of people recently. Enter Steve Roger’s “I can do this all day” quote. That’s how I feel about the price action. Why? Because the vast majority of my investments are long-term and trend-based. Also, I truly believe in the Cardano project, its approach, and how it will impact the world. If you’re not feeling the same way, you’re investing approach may not be the right fit.
Here’s our current daily chart. I shared on Friday that the loss of the 50D EMA and consolidation support made me think 100D EMA was in the cards. It happened exactly like I thought it would, although much faster. 100D EMA served as great support.
Now we’re in an interesting indecisive place - that’s the red box I’ve drawn. I’m watching to see if we break back and close higher timeframes (4 hr / daily) above the 50D EMA. If we do, I think we’re in for higher highs soon.
If we don’t do that in the next few days, we’re probably in for another test of the 100D EMA.
Here’s our current majors comparison view. It compares the performance of all crypto majors, stocks, and metals since March 2020 lows. Cardano is still more than 5x better returns than Bitcoin. All majors are showing the recent pullback on this scale.
Cardano continues to look good against the BTC pair. It did lose the support against the ETH pair. I’m not too concerned about that though. You can see above that Ethereum hasn’t performed nearly as well as Cardano since the bull run began. It will have its moments and this is one of them.
However, when Cardano breaks into price discovery (I think that’s a when, not an if), I expect Cardano to gain ground against the Ethereum pair once again.
Could that be this week? It could be depending on how the Africa Special and Capital Gains news play out. If you’re doing any short-term trading, it’s important to be paying very close attention right now. As always, I highly recommend you DO NOT USE LEVERAGE. Best wishes everyone!
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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