Quote of the Day

“Some things are so unexpected that no one is prepared for them.”

― Leo Rosten

Nobody was prepared for the pandemic or the way that it would reshape the world. There are some really funny skits of this idea on YouTube, this is just one example.

One of the keys to investing is being prepared for the things you’re not expecting or prepared for.

I personally didn’t expect a pullback of this magnitude or length for Cardano ADA over the last couple months. But my prior experiences in crypto have taught me to be prepared even for what I don’t expect. Learn to do this, and you’ll weather the storms of the unexpected and be prepared even when most others are not.

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In The News

1. Soaring inflation puts consumer prices at 6.8% higher than this time last year, the highest inflation rate since 1982. Our political leaders would have you believe that things are under control but that couldn’t be any further from the truth.

2. Cointelegraph recently covered Vitalik’s “endgame” roadmap for Ethereum 2.0. The article paraphrases Vitalik as saying, “there’s a high probability that block production will end up centralized regardless of the path to scalability that the network takes.”
   
   Yikes. This is why I prefer Cardano’s approach of beginning with the end in mind as opposed to moving fast and breaking stuff. Cardano has a path to scalability that includes decentralization.

Cardano Updates

1. Charles is taking a week off from all electronics to mediate without talking. I expect big things when he returns.

2. Ledger will be integrating Cardano ADA directly into Ledger Live in 2022! It’s about time.

Technical Analysis / Price Discussion

And now for the fun stuff. /sarc

Markets have been difficult for most people to watch. At least those invested in the markets. There’s a lot of FUD going around.

I’ll make two cases for Cardano ADA. First the bear case:

• ADA is 60% off its highs

• It’s broken down from the log-based bull market channel

• ADA’s been performing badly compared to other major recently including BTC, ETH, BNB, and SOL

• 50D & 200D EMAs just death crossed

• Fed Tapering is expected to accelerate soon and rate hikes are set to begin next year.

• Regulation of stablecoins is set to begin next year and the regulatory environment for all of crypto remains unclear.

Now the bull case:

• We’ve actually seen 60% pull-backs THIS bull run and then gone higher again

• Weekly RSI is as low as it has EVER been in ADA’s history including crypto winter of 2018-19. ADA markets are oversold.

• ADA is on top of important and significant support in the green trendline and the Volume Profile

• The break down from the bull channel is small and could easily represent a fake-out

• Sentiment is so negative that it’s hard for it to get worse

• DEXs and DApps are about to launch within weeks on Cardano

So comparing the two, seems to me like there are strong arguments for both sides at the moment, but the continued bull case wins for me unless the shaded green area is lost as support.

That’s it for today.

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.

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