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Breaking News: Bitcoin Price To Recover $100,000: BTIG Cites Key Reasons For Optimism

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

Reynaldo Marquez
Reynaldo Marquez
Last Updated: August 10, 2021 6:00 pm
2 mins read
Picture of cardano coin

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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.

Cardano ADA ADAUSDT
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.

Cardano ADA ADAUSDT
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.

Cardano ADA ADAUSDT
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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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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