Cardano Dan's Newsletter - Issue #54
Key to Success
Quote of the Day
"Before anything else, preparation is the key to success."
― Alexander Graham Bell
Preparation is key to success. Cryptocurrencies are very volatile. When you invest in them, you need to be prepared to sustain periods of time like the pullback we’re going through at the moment.
Most of the people doing well with their cryptocurrency investments right now weathered the crypto winter of 2018-2020. If nothing else, they prepared through experience.
If you want to succeed in investing, prepare for periods like this. That preparation will see you through the challenging and difficult stages.
As mentioned on Monday this week, here are some recommended ways of preparing for success:
Invest what you can afford to lose.
Don’t use use leverage.
Invest in quality projects.
Develop a plan.
Stick to your plan.
Key Takeaways from the Past Week
Monday - Life with Flavor
On Monday, we talked about how predictability can be really boring, and crypto can provide a really exciting life. But like I mentioned above, we also discussed how you need to be prepared for success when investing in crypto.
Wednesday - Don't Miss Life
Mid-week, we paused to consider that changing the world will take some time and it’s important not to miss out on the rest of life while we wait for it to happen.
Friday - Do the Impossible
On Friday we talked about how it will be really fun to achieve what many think is impossible over the next 3-4 months with the release of Alonzo.
Technical Analysis
It doesn’t feel like it, but at the time of this writing, Cardano ADA is actually in the midst of a green week.
Assuming I’m right that we’re still in a bull market (and I’m in very good company in that assessment) it’s important to know that a pullback / shakeout like this is not complete until people no longer think we’re still in a bull market.
That could be soon, or it could still take some time. The 200D EMA continues to line up with the very important .618 fib retracement level when measuring March 2020 lows to May 2021 highs. If we do go lower, I expect significant buying pressure between $.90 & $1.00.
Looking at the crypto majors performance since March 2020 lows…
Cardano ADA’s performance continues to be second to none among crypto majors. It’s quite impressive how well Cardano is holding up compared to all of the others.
In fact, while Cardano has pulled back like other blockchains, it is back to its largest margin over any other project.
Finally we look at our Bitcoin and Ethereum comparisons.
I’ve updated this chart to used market cap ratios instead of price pairings. This is important not just because of the upcoming ETH token burns beginning in July but also because of different rates of monetary expansion between Bitcoin and Cardano.
ADA has actually seen a small gain this week against Bitcoin and while seeing a small loss so far against Ethereum.
My overall takeaway here is that while ADA has been outperforming the two biggest protocols during market advances, it’s hanging right with them during major pullbacks. That shows the very significant durability that Cardano possesses. Likely due to its very strong community (that’s you!) and very high proportion of ADA that is staked and earning rewards.
That’s it for the weekly recap. Hope you all have a great weekend! (and holiday for those of you in the United States!)
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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