Cardano Dan's Newsletter - Issue #91
Bloody Nonsense
Quote of the Day
“This is the sort of bloody nonsense up with which I will not put.”
― Winston Churchill
This is what Churchill said when an editor tried to rearrange one of his sentences to avoid ending it in a preposition. Good for Churchill.
I would have loved to see him in today’s society. There’s a lot of nonsense going on that he wouldn’t have put up with.
Are you putting up with nonsense? Maybe it’s time to take a cue from Churchill and find a witty way of pointing out how ridiculous it is.
In The News
It seems as though the US Senate has finalized the language in the Infrastructure Bill and it is moving towards a vote in the Senate.
It turns out that this bill may not be as benign for crypto as the original news stories suggested. See this twitter thread for additional details. This is a fast moving story, so make sure to seek out updates over the coming days.
I talked about the #crypto aspects of the proposed infrastructure bill in my newsletter last night. This thread is a much different take on the potentially severe changes requiring #POS SPOs to KYC their delegators. Might be worth contacting your representatives. #Cardano $ADA1/ 🚨 Here's the deal with the US infrastructure bill: A new provision has been added that expands the Tax Code's definition of "broker" to capture nearly everyone in crypto, including non-custodial actors like miners, forcing them all to KYC users. This is not a drill 👇
Jake Chervinsky @jchervinskySquare announced an agreement to buy Afterpay for $29 Billion. Afterpay is an Australian company that enables consumers to purchase products with a loan and pay that back later in four equal installments without any interest or fees as long as they pay on time.
This news got me thinking about all of the interesting smart contract use cases that are about to be unlocked on Cardano in just a couple of months. Speaking of that…
Cardano Updates
Charles Hoskinson shared in a video update that the Alonzo hard fork tentatively scheduled for August 31st! At that point in time, developers can technically run smart contracts on Cardano!
However, the recommended way of running smart contracts would be to develop them using tooling that will be rolled out in the 1-2 months after the hard fork.
Fund 5 Project Catalyst voting ends about the time that this newsletter is going out. Thank you to everyone who voted for NFT Key!
We are very optimistic that our proposal will be funded and are already working hard on the development roadmap we outlined in the proposal.
Technical Analysis / Price Discussion
I’m almost always showing charts in log scales because it is the most appropriate way for an asset class that is growing so fast.
However, I wanted to show the Volume Profile indicator and it’s easier to look at an arithmetic chart and see the fib retracement levels from the 3rd wave of this bull cycle at the same time.
You’ll see that Cardano ADA has held the .618 fib level really well after multiple tests. ADA now finds itself above a major area of support on the Volume Profile where a ton of volume has been put in. This happens to line up with the 0.5 fib level.
While it’s true that a drop below the .618 fib could lead all the way to the $.40 level, I’m not expecting that given the strong current position we see and the fact that I’m expecting one final wave in the bull market.
Last week’s price action was quite encouraging and I expect even better days ahead over the coming weeks and months.
I’ve said numerous times that $1.50 is the level to break and hold to usher in the next wave of the bull cycle. That happens to line up fairly closely with the .382 fib level around $1.56. If you want to be more conservative, you could wait for a break and hold of that level as an indicator.
Comments are open. Let me know if there’s any specific topic you’d like me to cover or questions that you have, or if you think my analysis is “bloody nonsense.” :-)
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.