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Why Cardano Must Hold $1.25 To Chase Off The Bears, Says Legendary Trader Peter Brandt

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Cardano follows the general sentiment in the market and has seen appreciation over the past weeks. Although Bitcoin, Ethereum, and other major cryptocurrencies have been in a red market for months, ADA has displayed resilience staying well above its yearly open.

At the time of writing, Cardano (ADA) trades at $1.58 with profit across the board. In the daily and weekly charts, ADA records a 7.4% and 20.2% profit. The market capitalization stands at $50 billion making it the fifth-largest cryptocurrency by this metric.

ADA on a rally in the daily chart. Source: ADAUSDT Tradingview

Legendary trader Peter Brandt has been keeping a close eye on ADA’s performance and recently provided a bullish analysis. Previously, Brandt identified a potential Head and Shoulders pattern to support a bearish thesis but change his mind as ADA was able to hold the critical support at $1.25.

Cardano must stay above this level in order to sustain the bullish momentum. Otherwise, it could re-test support below $1. Brandt said:

New development in Cardano $ADAUSD The advance through the Jul 4 high goes a long way to negate the potential bearishness of the H&S top in this crypto. In fact, this price action can be viewed as bullish as long as price remains above 1.25.

Source: Peter Brandt via Twitter

This development has taken place after Brandt compared Cardano (ADA) with Litecoin (LTC) in 2018. At that time, the latter cryptocurrency formed a head and shoulders pattern that led to a substantial drawdown.

Source: Peter Brandt via Twitter

Brandt missed on its prediction with ADA, as it turned to the upside, he added:

When facts and circumstances change, I change my opinion. What about you?

Inventor Of Cardano Called Out Peter Brandt On His Prediction

ADA’s price action has been mainly driven by the rollout of its smart contract capabilities. To deploy with the Hard Fork Combinator (HFC) event Alonzo, developers, and part of the community is currently testing the platform and making good progress, according to Charles Hoskinson, CEO of IOG and inventor of Cardano.

In one of his Ask Me Anything (AMA) sessions, Hoskinson showed his disagreement with Brandt’s prediction. He believes that the trader’s analysis lacks support and is based on “his interpretation of arbitrary charts”. Hoskinson added:

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.

On Alonzo, Hoskinson revealed that the project is “on schedule”. The team at IOG is currently working on two main components, the HFC event to deliver the smart contract capabilities to the nodes and made those transactions valid on the mainnet and the infrastructure builds around the nodes. He added:

(…) that means we can do the Hard Fork (for Alonzo) relatively soon. My belief is within four to six weeks. So, late august early September.


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