Charles Hoskinson, CEO of Input Output Global (IOG), rejects Peter Brandt’s call for technical analysis, which predicts Cardano could lose up to 90% of its value.
Hoskinson added that he “really loathes” technical analysis while comparing the process to voodoo because it doesn’t make any sense.
“With all due respect to Peter, I think it doesn’t work that well. The other thing is that the markets are so much more complicated. “
What did Peter Brandt say?
Trading company Factor LLC, Peter Brand, recently published his technical analysis of Cardano, which suggests a possible head-and-shoulders pattern on the chart.
Brandt said he named a similar setup with Litecoin in 2018, which later turned out to be correct. Hence, he predicts ADA is pointing down, which could cause it to drop as low as $ 0.12 – or a 90% drop from its price at the time of the analysis.
“I remember being mercilessly ridiculed for identifying this top in $ LTCUSD back in mid-2018
Hello Cardano trolls $ ADAUSD , Aim…“
@PeterLBrandt on Twitter.com
A head and shoulders pattern is a technical indicator that has a chart pattern that is described by three spikes; the outer two “shoulders” are close in height while the middle “head” is tallest. Typically, they indicate a bullish to bearish trend reversal and signal the end of an uptrend.
If the pattern develops as expected, Cardano price will soon break below the horizontal neckline and fall about the level between the upper and the support lines of the mid-peak.
Cardano founder disproves the effectiveness of technical analysis
In response to Brandt’s appeal in a recent AMA, Hoskinson dismissed the analysis by downplaying the effectiveness of what was said by calling it an arbitrary interpretation of graphs.
“That was an article from Cointelegraph, if you dig deeper from what Peter said.
In yet another setback in analysis, Hoskinson points out that today’s sophisticated, computerized methods make technical analysis, which uses only candlestick patterns, somewhat obsolete.
“Technical analysis worked well before computers and when people acted with some level of intuition or with fundamental analysis. In the age of quants and AI black box models and big data and those things, it doesn’t make any sense to look at a simple chart for candles. “
Cardano is up over 670% since the start of the year and held its own with a relatively stable performance during the most recent crypto crash.
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