Cardano Dan's Newsletter - Issue #53

Do the Impossible

Quote of the Day

“It's kind of fun to do the impossible.”

— Walt Disney

Cryptocurrencies have had a lot of famous doubters through the years. One by one, many of them are flipping to support the technology and new kind of digital money.

Similarly, Cardano has had a lot of skeptics through the years. Here are some of their recent quotes.

Adam Back @adam3us

@IOHK_Charles @all_cardano @PhantomMedalli1 @BlockGeekDima @udiWertheimer @SBF_Alameda @michael_saylor Lols no. Too many alts insufficient time for white paper and marketing output vying for public notice. Don't even know what Cardano is doing. Tho it has some researchers with decent academic publication records in relevant domains.

Mike Novogratz @novogratz

Last question before I go shower, can anyone make a real bull case for $ADA? Does anyone build on it? Use it? Why is market cap so high? Should it be a funding asset? It’s one of the few cryptos I haven’t traded in my life.

Mark Cuban @mcuban

Are you, personally, able to use $ADA for anything ? If so, what have you used it for ? That's the question I ask about all Crypto. Do you find yourself using it for anything that you find value in ?

Crypto Fan @Crypto_fan_IN

@mcuban Mr Cuban, what stops you from reviewing the King #Cardano #ADA $ADA. Take fundamentals, usage, energy consumption. It will beat everything in all dimensions. @IOHK_Charles

It’s as if they’re operating from the same talking points like the mass media. These folks all have hidden agendas tied to other projects, primarily Bitcoin & Ethereum. They publicly throw shade at Cardano implying it is impossible for Cardano to provide any functional improvement over their preferred projects.

It’s going to be fun doing the impossible over the coming 3-4 months.

In The News

1. Biden is planning to unveil a $6T budget that would drive the federal deficit to $1.8T in 2022 alone.

   This budget includes the assumption that the increase of the top tax rate on capital gains to 43.4% will be retroactive to April of this year.

   Here are my thoughts on that.

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

   Retroactive tax increases should be illegal if they aren't already.

2. On the positive side of the ledger, there are some forward thinking and rational legislators around.

   The Colorado Governor wants to let people pay taxes with crypto saying the following at Consensus 2021 earlier this week, “I’d be thrilled to be the first state to let you pay your taxes in a variety of cryptos.”

   That would be a great step forward for the adoption of cryptocurrencies in the United States.

Cardano Updates

Today’s Cardano Updates are all about news coming out of the monthly Cardano 360 update earlier today.

1. The Alonzo Roadmap was revealed in greater detail. It is a 30/60/90 day plan. It’s well thought out and there are clear objectives and steps along the way, with each step represented by a color. Here’s a link to a good and short segment providing an overview of the plan.

   

2. This month’s update also included a demo of Marlowe Run! The demo showed off a smart contract loan use case. I was quite impressed with the simplicity and design of the quality User eXperience.

   

3. And in even more exciting news, we found out that the ERC20 Converter will hit the Alonzo testnet in June. The converter was also demo’d, showing off its own clean and easy UX.

   

It seems to me like we’re on track for the Alonzo HFC event in September sometime. I’d be very impressed and surprised if it happens before then.

A September launch of this next generation technology is going to knock the socks off of the cryptocurrency world. The next few months should be really good for Cardano ADA, keeping in mind that crypto is often a buy the rumor, sell the news kind of space.

Although the “news” in this case may be so transformational and create so much demand for ADA that it may be hard to sell.

Technical Analysis

I’ve been looking at the Volume Profile Visible Range (VPVR) indicator more often recently looking for some clues on support and likely direction.

As I look at the chart below, we’ve found some really strong support around $1.20. It strikes me that we are either going to put some volume in around $1.80-$2.00 soon or we could fill in volume below $1.00.

Then I consider the fundamentals…

• Money printer is still going brrrr (as discussed related to Biden’s proposed budget)

• Cardano is rolling out smart contracts next quarter including an ERC20 converter and resulting in way better UX and lower fees for DeFi and RealFi applications

• Most of the S2F modelers suggest, and historical analogs do as well, that we’re still in the midst of a bull run.

So I continue to think that we’re looking higher in the near term and that higher includes some price action around $2 before we know it.

That being said, there is potential downside and it could be significant. There are all sorts of black swans lurking in financial markets and any one of them could have a negative impact on crypto markets.

What do you think? Do you find the VPVR indicator useful?

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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.