Input-Output Global (IOG) CEO Charles Hoskinson rejects Peter Brandt’s technical analysis call, predicting that Cardano could lose up to 90% of its value.
Hoskinson went on to say that he “really despises” technical analysis, comparing it to voodoo because it makes no sense.
“With all due respect to Peter, I don’t think this works as well as it should. The other issue is that markets have become far more complex.”
What did Peter Brandt have to say?
Peter Brand, the CEO of trading firm Factor LLC, recently posted his technical analysis of Cardano, which indicates the formation of a possible head and shoulders pattern in the chart.
Brandt stated that he predicted a similar setup with Litecoin in 2018, which later proved correct. As a result, he believes ADA is poised for a drop to as low as $0.12 – a 90 percent drop from its price at the time of analysis.
“I recall being scorned mercilessly when I identified this top in $LTCUSD in mid-2018.
Take aim, Cardano trolls $ADAUSD…“
Ahead and shoulders pattern is a technical indicator with three peaks on a chart; the outside two “shoulders” are close in height, while the middle “head” is the highest. They typically denote a bullish to a bearish trend reversal, indicating the end of an upward trend.
If the pattern holds, the Cardano price will soon break below the horizontal neckline and fall by as much as the height between the top and support line of the middle peak.
The founder of Cardano questions the efficacy of technical analysis.
In response to Brandt’s call in a recent AMA, Hoskinson dismissed the analysis by downplaying the efficacy of what was said, referring to the entire thing as an arbitrary interpretation of charts.
“If you actually dig into what Peter was saying, there were tons of disclaimers, terms, and conditions, and it was strictly a technical and not fundamental analysis based on his interpretation of arbitrary charts.”
In a further criticism of the analysis, Hoskinson points out that today’s sophisticated, computer-driven methods render technical analysis based solely on candlestick patterns obsolete.
“Technical analysis worked well before computers and when people traded with some degree of intuition or in conjunction with fundamental analysis. Looking at a simple candle chart makes no sense in the age of quants and AI black-box models and big data and these things.”
Cardano is up over 670 percent year to date and managed to maintain a relatively stable performance during the recent crypto crash.