Is Crypto Analyst Raises Concerns Renowned cryptocurrency analyst Benjamin Cowen, who is closely monitored by investors, has sounded a cautionary note regarding Solana (SOL), a prominent altcoin. Cowen has expressed the possibility that Solana might encounter a substantial downturn akin to the experience of Cardano (ADA) back in 2019.
Here is a breakdown of the concerning prediction put forth by the analyst.
Drawing Parallels: Solana’s Trajectory Compared to Cardano’s Past
Benjamin Cowen, a respected figure in the crypto analysis realm, has observed that Solana exhibited relatively greater resilience compared to other altcoins, likely due to a significant capitulation event towards the close of 2022. The analyst highlighted that SOL found its lowest point earlier this year, subsequently reached its peak after a span of months, and then encountered a decline post breaking its recent high. Cowen drew a parallel between this price movement and the trajectory witnessed by Cardano (ADA) in 2019:
The focus now turns to Solana‘s capacity to recuperate following its recent downward move. While there is uncertainty about SOL dipping below the trend line around $16.5, Cowen suggests the potential for a pullback to roughly $11.
It’s important to acknowledge that this projected price drop could be significant. Nevertheless, it’s worth recalling that Cardano’s ADA underwent a remarkably similar sequence in 2019.
ADA witnessed a capitulation through this price trend, then rebounded, attained a local peak, and subsequently started descending. However, the intriguing part was that it staged a recovery by revisiting its earlier lows.
Cowen emphasized that Cardano’s recovery process only initiated in the long term after hitting its lowest points. This perspective leads him to speculate that numerous altcoins might undergo pullbacks and revisit certain support levels, with the possibility of dipping even lower than these established levels. This market trend could potentially unfold before the much-anticipated Bitcoin block reward halving event.
Current State of Solana
As of the time of drafting this piece, data from CoinMarketCap reveals that SOL is trading at $24.62, reflecting a 6.37% increase within the past 24 hours. Notably, SOL has experienced a 4.56% upswing over the past week and a 14.09% increase over the last month.
With a market capitalization amounting to $9.98 billion, SOL presently holds the 8th position in the roster of major altcoins. However, it’s pertinent to mention that SOL’s current price is approximately 90.53% below its all-time high of $260.06.
