Peter Brandt (a veteran trader) had provided a technical analysis regarding ADA’s recent price. He believes that despite the recent increase, with ADA currently trading at around $1.35, we could nevertheless witness a drop that will be similar in nature to the one that had happened with Litecoin (LTC) back in 2018.
Charles Hoskinson had dismissed Peter’s analysis, though, mainly because although this kind of research may have been credible a few years ago, the market has simply evolved too much for such an analysis to work now. Due to the markets becoming increasingly complicated, Peter’s ‘head and shoulders’ pattern, which he claims has been created on ADA’s price chart, is not as relevant in this day and age as some would have us believe, according to Hoskinson.
‘Head and shoulders’
Simply put, any pattern with the ‘head and shoulders’ description usually refers to a chart formation that shows itself as a kind of ‘baseline that has three peaks.’ In this formation, one of the peaks will be the highest, whereas the other two, which will be on the left and right, will be more or less equal in height, thereby giving the chart formation its aforementioned name due to it appearing as ‘two shoulders with a head in the middle.
As far as technical analyses may be concerned, this kind of pattern is often utilized to expect a reversal (bullish to bearish), and numerous investors believe that this is an extremely reliable pattern that has seldom been incorrect in the past. Hoskinson, however, believes that this is still a ‘technical and thus not a fundamental’ analysis that is heavily reliant on Peter’s own understanding of various arbitrary charts. He added that due to advancements in technology these days, such as those based on big data and AI (Artificial Intelligence), black-box models, depending on a chart such as the one provided by Brandt, no longer make sense.
Cardano continues to build momentum
Charles Hoskinson’s project, Cardano (ADA), has been receiving a lot of attention lately, and for a good reason. It is highly sought after by several investors and is a top cryptocurrency, no matter how anyone looks at it. Most recently, Cardano had even expanded to Japan by having its native ADA token set to be listed via Bitpoint, a Japanese cryptocurrency exchange.
Charles himself had confirmed that smart contracts shall be made fully available once the upcoming Alonzo hard fork is successful and that things are only going to get better from here on out.