Cardano Dan's Newsletter - Issue #9
Sustainability is getting more attention and that's good for Cardano
Welcome to the quick-hitting newsletter about Cardano, Crypto Trading, Blockchain, Monetary Policy, & Data Privacy.
I hope you enjoy this newsletter and that it gives you some new ideas about the value Cardano brings to blockchain. If you enjoy it, please share it with others when you get to the end!
Quote of the Day
“The tipping point is that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire.”
― Malcolm Gladwell, The Tipping Point
Agree with it or not, the belief that Greenouse Gas (GHG) emissions are doing permanent harm to our world’s ecosystem has reached a tipping point.
Massive amounts of time, energy, and money are going into reducing energy use and creating clean energy sources.
Many organizations are committing to “Net Zero” carbon initiatives to eliminate ALL GHG emissions created by their activities within the next several decades.
Why does this matter to blockchain?
Blockchain Nugget
Bitcoin currently consumes 120 TWh (Terawatt hours per year) of electricity, the equivalent of a small country.
This has set off a raging debate about whether or not this use of energy is wasteful. Here’s a great article on the topic by Forbes.
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In the News
The debate has spilled over into a trending segment of blockchain, NFTs. You probably heard the news about Beeple’s $69 Million dollar sale…
Did you also hear that some artists are cancelling their NFT sales because of their concern about NFTs’ impact on the environment?
That’s right, because Ethereum is also a Proof of Work blockchain like Bitcoin (meaning it consumes a lot of electricity too).
One NFT artist, Joanie Lemercier, cancelled an upcoming release on NiftyGateway saying
It turns out my release of 6 CryptoArt works consumed in 10 seconds more electricity than the entire studio over the past 2 years.
You can read more about Joanie’s assessment here.
Cardano Nugget
Cardano, being a Proof of Stake protocol, uses WAY less energy than Bitcoin and Ethereum. Estimates vary, but by any estimate, Cardano uses orders of magnitude less energy than Bitcoin and Ethereum. Here’s a video from last year that provides a good overview of the potential energy savings that Cardano can bring.
And with the recent Mary hard fork, Cardano now support Native Tokens that enable NFTs. Put all of that together, and you have the right solution, at the right time, at the right place. That’s a good recipe for another kind of tipping point… some call it a “flippening.”
Technical Analysis
We’re pretty much exactly where we were two days ago. Cardano ADA is still around $1.11 (at the time of writing). So my last analysis remains quite applicable.
I’ll remind you that:
At least a couple of birds still haven’t landed yet
There’s lots of stimulus dollars about to be injected into crypto
With that in mind, check out the ADA / BTC & ETH charts below:
Cardano has seen a price action pause for a couple of weeks
This, combined with some moves by Bitcoin and Ethereum, has provided a pullback in the BTC & ETH pairs that now sees ADA testing significant prior resistance levels on both pairs as support.
With the fundamental news combined with the technical position, I think we’re in store for more fireworks soon.
Morning Update
Overnight we tested the .618 fib and another version of uptrend support. 4 hour RSI starting to look a little oversold. Heading into normally bullish weekends, especially one where stimulus checks are supposed to begin landing in people’s checking accounts, this all still looks like a good time to buy to me.
However, we are getting close to losing important support if we drop lower on larger timeframes. I don’t see it happening, but it’s something to be aware of. As always, do your own research and trade your own book!
Trading Idea
Do you have a short-term trading bag? This bonus idea may intrigue you. In scanning my charts looking for a nice play in the near-term, I came across Avalanche (AVAX).
That reminded me that I saw a recent tweet from Beastlorion on the project.
Keep in mind, I know nothing about the fundamentals of this project, but from a technical perspective, it looks to me like it’s ready for another really nice run. Fib levels on the trend based extension provide some ideas for targets.
Tell Me What You Think
What do you think? 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.