No, Cardano Price won't Crash Anytime Soon: Charles Hoskinson
Late last month, Peter Brandt, a revered technical analyst, said there was an ominous similarity between current ADA/USD prices and LTC/USD candlestick arrangements—a few days before it crashed after peaking in late 2017.
If ADA follows the same pattern, Peter predicts, the odds of ADA crashing from spot rates will be high.
However, in a recent AMA session, Charles Hoskinson, the lead developer of Cardano through Input Output Hong Kong (IOHK), dismissed Peter's technical analysis. He said the cryptocurrency market is getting complicated everyday, making Peter's analysis ineffective and useless.
The founder went on to say technical analysis only worked well in the days before computers, where traders were successful based on intuition and a mix of fundamental analysis. With AI and big data powering black-box models, technical analysis as a method of picking out entries and exits, he says, made no sense at all.
Unlike other markets, cryptocurrency is unique because of the hype element. This sentimental factor, some analysts maintain, may at times play a big part in invalidating technical analysis in crypto trading. Besides, crypto is a new field with new laws being formulated in a bid for regulation.
Fundamentally, Cardano is strong and continues to be built. Cardano will soon activate smart contracting via Goguen, enabling DeFi and NFTs in the months to come.