Cardano (ADA) founder Charles Hoskinson has dismissed technical analysis published by veteran trader Peter Brandt suggesting that the price of ADA could soon plunge after forming a pattern similar to one Litecoin saw in 2018.
In an Ask Me Anything (AMA) session, Hoskinson dismissed the technical analysis, suggesting that markets are now too complicated for it to work and even likening it to “voodoo” that doesn’t make sense. His words came in response to Peter Brandt showing a head and shoulders pattern has formed on ADA’s chart.
A head and shoulders pattern, according to Investopedia, is a chart formation that appears as “a baseline with three peaks,” with the one in the middle being the highest and the other two being close in height – forming what resembles a head and two shoulders.
In technical analysis, a head and shoulders pattern is used to predict a bullish-to-bearish trend reversal and is “believed to be one of the most reliable trend reversal patterns.”
In his response, as CryptoSlate reports, Hoskinson noted that Brandt’s call was “strictly a technical and not fundamental analysis based on his interpretation of arbitrary charts.” He added that markets nowadays are too evolved for such analysis to work, saying:
Technical analysis worked well before computers, and when people were trading with some degree of intuition, or along with fundamental analysis. In the age of quants and AI black box models and big data and these things, looking at a simple chart for candles, it makes no sense at all.
As CryptoGlobe reported, Hoskinson has confirmed that after the Alonzo hard fork smart contracts will be available on the cryptocurrency’s network, and added that with time the infrastructure on Cardano will only get better.
Last month, ADA’s popular Yoroi wallet launched a decentralized application connector that will make it easier for users to interact with smart contracts and these applications once they go live on the Cardano network. Some decentralized platforms are already preparing to go live on the Cardano network. Cardax, the first decentralized exchange set to launch on it, recently raised $1.5 million from its first community sale.
Last week Amy Arnott, a portfolio strategist at Morningstar that focuses on cryptocurrencies, has revealed she believes ADA could become one of the largest three cryptocurrencies by market capitalization and go mainstream, along with Bitcoin and Ethereum.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured Image via Unsplash