Cardano Dan's Newsletter - Issue #5

Fear or Greed?

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

I hope you enjoy this newsletter and that it helps you understand what is coming. If you enjoy it, please share it with others when you get to the end!

Cardano Nuggets

March 31st, 2021 will be ‘D=0 Day’ on the Cardano network. This will be the day that Cardano’s network of 1800+ community pools will be solely responsible for producing blocks. Read more about this momentous milestone here.

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Quote of the Day

Be Fearful When Others Are Greedy and Greedy When Others Are Fearful

― Warren Buffett

In the News

Buffet’s quote is relevant because there is A LOT of fear in the markets right now. The fear boils down to this:

• Rates are going up really fast creating economic drag (see next bullet)

• Higher rates make debt more expensive and therefore drive stock prices down

• The Federal Reserve missed an opportunity to communicate a plan today

• The Fed is in-between the infamous “rock and hard place”

Around the Block

Crypto markets, which up until now have been quite resilient, are not pleased about the situation.

Here’s a heatmap of the last 24 hours of crypto price performance at the time of this writing from coin360.com

Analysis

I think Cardano presents a nice buying opportunity here because:

• RSI is oversold on the 4 hour

• We’re testing 21 Day EMA which has been strong support before

• Close to testing the bullish support trendline

• Have surpassed a .618 fib retracement of the last move

• VPVR shows some nice support around $1

• $1 is a psychological support level

• There’s lots of positive news yet to come in the near future for Cardano

• The Fed ALWAYS steps in to calm markets when they get fearful

I think it’s a great buying opportunity. But, there are scenarios where I could be wrong too. Lots of them. One example is that if we were to lose $.80, there are cases that Cardano ADA could drop a whole lot more (check out the VPVR). Also keep in mind the crazy run that ada has seen over the past two months - over 700% gains!

But given my analysis above, even if we have further down to go, I think we’re due a relief rally, even if there’s more downside from an intermediate perspective which leads me to think it’s a good time to buy for most investing / trading strategies.

As always, do your own research and trade your own book.

Tell Me What You Think

Is it time to be fearful or time to be greedy? Comments have been turned on for this post. 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.