Cardano Dan's Newsletter - Issue #74
Blockchain Artists
Quote of the Day
“I saw the angel in the marble and carved until I set him free.”
— Michelangelo
Michelangelo is one of the most famous artists of all time. I love the vision he had; you can see it in the way that he talked about his work.
The creators of Cardano have the same kind of vision. The work that they’re doing on the protocol is like sculpting in a way. They have a vision, and it needs to implemented slowly and with care, just like a sculpture or a great work of art.
We see the work of the Cardano team coming into focus now. Before long, with the release of Alonzo, we’ll see the largest glimpse of this great work of art and engineering that we’ve seen to date.
I can’t wait to take the whole thing in.
Key Takeaways from the Past Week
Monday - Well Traveled Roads
On Monday, we talked about the safety in sticking to well traveled roads when investing in cryptocurrencies and celebrated the completion of Project Catalyst Fund 4 voting.
Wednesday - Taxation & Inflation
Mid-week, we considered how painful heavy taxation and inflation is for the middle-class and announced the launch of the Trybbles NFT sale.
Friday - Close to Success
On Friday, we took note of how many people give up right before they could succeed and commented on recent Coinbase news.
Technical Analysis
Weekly updates are all about zooming out. The big channel in the chart below is the bull cycle channel dating back to March 2020.
We’ve now broken higher out of the shorter term channel that I’ve been tracking for a couple of weeks and Cardano ADA is testing the 50D EMA.
My primary expectation is that we bounce around in a tight range between the 50D EMA and 100D EMA (maybe as low as the centerline of the bull cycle channel) and then ADA breaks through the 50D EMA.
The alternative I’ve mentioned for a couple of weeks is that ADA could lose the neckline of the head and shoulder pattern (and the 200D EMA) and see a large drop to the bottom of the bull cycle channel. I don’t expect this case.
Volume is really low at the moment. I expect an increase in volume as soon as 50D EMA is retaken as support or the neckline of the head and shoulder pattern is lost.
Looking at the crypto majors performance since March 2020 lows… Nothing new here, Cardano ADA remains in a league of its own.
In fact, Cardano ADA is currently the only crypto major above its 100D EMA and ADA is almost above its 50D EMA when none of the other top 10 are above their 100D… so strong.
Finally we look at our Bitcoin and Ethereum comparisons using market cap ratios.
Cardano is consolidating around all time bests in both comparisons. I am hopeful (and expectant) that Cardano ADA is going to see new all time market cap ratio highs with the launch of Alonzo and smart contracts over the next few months.
No matter what happens, it will be exciting times!
That’s it for the weekly recap. Hope you all have a great rest of your weekend! Especially if you’re celebrating Independence Day 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
Hi Dan, inspiring content in this newsletter. Exciting news ahead (Goguen), will be interesting to see how the market responds (will this spike demand and price, or is already factored in by the market). Volume indeed was very very low past weeks, impacting price. I’m cautiously short-term optimistic (patiently waiting for a dip), and long-term def. bullish on Cardano.