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Cardano (ADA) is the fifth-largest digital asset in the crypto market and has quite a prominent presence. Similar to the rest of the crypto market, Cardano has also seen some serious fluctuations over the last few weeks.
Peter Brandt, a veteran trader, published a technical analysis (TA) that suggested the price of Cardano will soon plunge. Brandt’s analysis was based on a pattern he noted for Litecoin as well back in 2018.
Peter Brandt shared his analysis on Twitter.
This left many crypto and ADA enthusiasts to wonder if it was correct and whether the value of ADA will take a hit or not.
However, Charles Hoskinson, Cardano’s founder, had a different opinion and reportedly dismissed Brandt’s TA and Cardano price prediction.
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Why Has Charles Hoskinson Dismissed Brandt’s TA?
As seen in Brandt’s tweet above, his TA for ADA’s price is based on the head and shoulder pattern formed on the charts. The head and shoulder pattern is a chart formation that looks like a “baseline with three peaks”. The peak in the middle is the highest and the other two are somewhat closer to it, hence it looks like a head and two shoulders.
While working on a TA, this pattern is considered to be one of the most reliable trend reversal patterns and predicts a bullish-to-bearish trend reversal.
In response to Peter Brandt’s technical analysis, Hoskinson shared a different opinion in an Ask Me Anything (AMA) session.
The founder of ADA dismissed Brandt’s TA and stated that the markets nowadays are way too complex for his technical analysis to work. He continued to state that Brandt’s analysis is only technical and not fundamental. It is based on his understanding of arbitrary charts. Therefore, according to Hoskinson, the markets are too evolved and complicated for such a TA to work.
What Are Some Reasons for Hoskinson’s Confidence in Cardano ADA?
One of several reasons for Charles Hoskinson’s confidence in ADA is the Alonzo hard fork smart contracts. Once the Alonzo upgrade is completely launched it is speculated to take the ADA blockchain to an entirely new level.
According to reports, Hoskinson has confirmed that the Alonzo hard fork smart contracts will soon be available, which will improve the infrastructure on ADA.
It has also been noted that a decentralization application connector was launched by Cardano’s Yoroi wallet last month. It will help the users in interacting with the smart contracts and the applications as soon as they are live on the ADA network.
Other decentralized platforms such as Cardax are already preparing to go live on Cardano’s network.
According to a portfolio strategist, Cardano can very likely be one of the top three crypto assets, alongside Bitcoin (BTC) and Ethereum (ETH).
These are some of the basis why Hoskinson has not taken Brandt’s TA seriously. If you have also planned to invest in it, you can opt for the best crypto exchanges and avail free bonuses.
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