Cardano Dan's Newsletter - Issue #78

Time & Fun

Quote of the Day

“Time flies when you’re having fun.”

— Albert Einstein

I’ve found this expression to be true. Is time dragging on for you while you watch the crypto charts lately? Go do something else that’s fun.

The markets aren’t always pumping and fun. Some of the wisest investors/traders know how to identify a boring market and move on to using their time more effectively and enjoyably until the conditions change.

If you believe in the long-term world-changing potential of blockchain and cryptocurrencies, you don’t need to worry about the markets right now.

Go do something fun, hang out with friends and family, build something on Cardano instead of just trading… time will start flying again and before you know it, so will crypto prices.

Key Takeaways from the Past Week

Monday - Freedom & Sheep

On Monday, we talked about the importance of exercising the right to freedom of speech and Cardano’s addition to Grayscale’s Digital Large Cap Fund.

Wednesday - Invest in Knowledge

Mid-week, we considered how investing in knowledge is the best investment you can make and that Cardano provides endless opportunities for enjoyable learning.

Friday - True Strength

On Friday, we discussed that there is real strength in voting and you can vote to influence the Cardano ecosystem with your ADA delegation and your Project Catalyst vote. Please delegate to DAN, DAN2 or RELY and register to vote for NFT Key in Project Catalyst Fund 5!

Technical Analysis

Weekly updates are all about zooming out. Here’s what I have drawn on the Cardano ADA chart below:

• The big channel in the chart below is the bull cycle channel dating back to March 2020.

• Two important horizontal lines, one support and one resistance

• A new potential uptrend line that could turn into the bottom of a wave 5 channel for the final leg of the bull cycle

You can see that we’re approaching decision time. I’m expecting a move up or down in the next week or so as price action approaches to test the new uptrend line I’ve drawn.

My primary expectation is that we break higher, through $1.50 and then work to establish that level as support once again.

The alternative I’ve mentioned for a few 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 remains really low. Any breakouts without volume should be suspect. Be careful of fake-outs. It’s common for crypto to do a head-fake in one direction and then move with big volume in the other direction.

Looking at the crypto majors performance since March 2020 lows… Nothing new here, Cardano ADA remains in a league of its own.

Finally we look at our Bitcoin and Ethereum comparisons using market cap ratios.

Nothing new here either. Cardano continues consolidating around all time bests in both comparisons. Alonzo and smart contracts loom as impetus for change on these charts over the next few months.

That’s it for the weekly recap. Hope you all have a great rest of your weekend!

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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