Cardano founder Charles Hoskinson dismisses risk of 90% drop in ADA as ‘voodoo’


Input Output Global (IOG) CEO Charles Hoskinson rejects Peter Brandt’s technical analysis call, which predicts Cardano may lose up to 90% of its value.

Hoskinson added that he “really loathes” technical analysis while likening the process to voodoo in that it makes no sense.

How To Get Free Crypto  

“With all due respect to Peter, I don’t this works so well. The other thing is that markets are so much more complicated.”

What did Peter Brandt say?

The CEO of trading firm Factor LLC, Peter Brand, recently posted his technical analysis of Cardano, which points to a possible head and shoulders pattern forming in the chart.

Brandt said he called a similar setup in 2018 with Litecoin, which later proved correct. As such, he predicts ADA is posed for downside action, which could see it drop to as low as $0.12 – or a 90% crash from its price at the time of analysis.

I remember being scoffed at unmercifully when I identified this top in $LTCUSD back in mid 2018

Hey Cardano trolls $ADAUSD , take aim…

@PeterLBrandt on

A head and shoulders pattern is a technical indicator with a chart pattern described by three peaks; the outside two “shoulders” are close in height, while the middle “head” is highest. Typically, they indicate a bullish to a bearish trend reversal, signaling the end of an upward trend.

If the pattern plays out as expected, the Cardano price will soon break below the horizontal neckline and fall by as much as the height between the middle peak’s top and support line.

Coinbase Banner  

The Cardano founder refutes the effectiveness of technical analysis

Responding to Brandt’s call in a recent AMA, Hoskinson dismissed the analysis by downplaying the efficacy of what was said, namely by calling the whole thing an arbitrary interpretation of charts.

“That was a hatchet job article by Cointelegraph if you actually dig into what Peter was saying there was tons of disclaimers, terms, and conditions, and was strictly a technical and not fundamental analysis based on his interpretation of arbitary charts.”

In a further knockback of the analysis, Hoskinson points out that today’s sophisticated, computer-driven methods make technical analysis using just candlestick patterns somewhat superfluous.

“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.”

Cardano is up over 670% year-to-date and managed to hold its own during the recent crypto crash with a relatively stable performance.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.

Go to Source
Author: Samuel Wan

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.