Veteran cryptocurrency trader Peter Brandt, known in the cryptocurrency space for accurately calling Bitcoin’s 84% decline in 2018, has revealed that a new development in Cardano’s (ADA) chart shows the cryptocurrency nice to hold a key level to remain bullish.
In a tweet, Brandt noted that recent advances in the cryptocurrency’s price went a “long way to negate the potential bearishness” of a head and shoulders pattern seen in the cryptocurrency’s chart earlier.
The trader noted that the price action can be seen as bullish “as long as price remains above 1.25.”
Earlier this month, Brandt’s chart showing a head and shoulders pattern on the cryptocurrency drew a response from Cardano founder Charles Hoskinson, who 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.
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.” At press time, ADA is trading close to $1.7, according to CryptoCompare.
At the time, Hoskinson said 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.”
Cardano’s ADA has a major upgrade coming in the near future, that Hoskinson confirmed will make smart contracts available on its network as soon as its launch. 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.
Earlier 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