Crypto Analyst Predicts Solana Could Mirror Cardano Price Action – A Buy Or Sell Alarm?
24 August 2023 - 3:00AM
NEWSBTC
The general crypto market has seen a decline in the last week, with
most assets recording significant losses. Solana (SOL), one of the
most prominent cryptocurrencies, is down by 11.50% in the last
seven days and 16.17% in the last month. Interestingly, popular
crypto analyst, Benjamin Cowen has posted a puzzling prediction on
Solana, drawing much similarity between the token’s current price
movement and historical price data of fellow altcoin Cardano
(ADA). SOL To Close 2023 With Losses? According to an X post
on August 23, Benjamin Cowem believes Solana’s price movement might
be mirroring Cardano’s price trajectory in the last crypto
cycle. Related Reading: Solana Cuts Saga Price By 40%, But
Case For New SOL Yearly High Increases Based on the weekly charts
of both assets, Solana presents a ranging market quite identical to
Cardano’s price movement for most of 2019. In fact, in both
charts, these ranging markets are preceded by a bearish
trend. Good chance $SOL sweeps the lows, just like $ADA did
last cycle. pic.twitter.com/KHJEPdV6qU — Benjamin Cowen
(@intocryptoverse) August 23, 2023 Analyzing this data, Cowen notes
that SOL has recently encountered resistance at the $26 price zone,
which is similar to Cardano’s trouble in crossing the $0.11 hurdle
in mid-2019. The analyst predicts that if Solana is indeed
mimicking Cardano’s price action, it will likely experience a
downward trend for the rest of 2023. According to Cowen’s
predictions, SOL could fall as low as $10 in 2023, just as Cardano
plummeted to $0.028 in early 2020. If these projections hold true,
the SOL market could lose over 50% of its value in the coming
months. However, it is worth stating that Cowen’s price
analysis does not spell all gloom for SOL investors. Upon falling
to the $0.028 price zone in 2020, Cardano embarked on a bullish
run, gaining by over 7,600% in the next two years. If Solana
follows the same price pattern, the altcoin could trade as high as
$1,500 in 2025. Investors should remember that predictions are not
guaranteed and, thus, should be considered as investment advice.
Solana, Among Others, Faces TVL Decline In other news, the Solana
network has recorded a 4.5% decline in its Total Value Locked (TVL)
over the seven days based on data from DefiiLlama. According
to the DeFi analytics site, the majority of the DeFi
ecosystem appears to be under siege, with total DeFi TVL having
dipped below $40 billion and is currently valued at $37.56
billion. Related Reading: Cardano Holder Resilience Tested As
ADA Fends Off Bearish Onslaught Aside from Solana, other prominent
networks such as Ethereum, Cardano, and Polygon have also seen
their TVL plummet by 11.08%, 6.54%, and 8.89%,
respectively. At the time of writing, SOL is currently
exchanging hands at $20.59, with a 2.16% loss on the last day.
However, with a total market cap of 8.39 billion, Solana remains
the ninth-largest cryptocurrency in the market. SOL trading at
$20.52 on the weekly chart | Source: SOLUSD chart on
Tradingview.com Featured image from Binance Academy, chart from
Tradingview.
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