In the ever-fluctuating world of cryptocurrencies, Benjamin Cowen, founder of ITC Crypto, has issued a stark warning about Solana’s (SOL) price trajectory. According to Cowen, SOL could be on the brink of a significant downturn, potentially plummeting to $85 before the end of 2024. His analysis, shared on X, highlights alarming similarities between the current SOL/BTC trading patterns and those seen with Ethereum (ETH) in the past, suggesting a major correction might be imminent.
Historical Echoes – Ethereum’s Price Pattern and Its Implications for Solana
To grasp the gravity of Cowen’s prediction, it’s essential to look back at Ethereum’s price history. In 2018, ETH/BTC experienced a catastrophic 90% drop, which was followed by an impressive rebound in late 2020. Ethereum’s price surged by 500% by the end of the 2020/2021 cycle. However, this meteoric rise was short-lived, leading to a consolidation phase and another significant correction. This historical context is crucial for understanding the potential future for Solana’s price.
Cowen’s analysis suggests that SOL/BTC is mirroring Ethereum’s past movements. After a dramatic 90% drop from its 2021 peak, SOL/BTC hit its low point in mid-2023 and has since experienced a rebound of over 500%. Despite these similarities, the absence of a consolidation phase in SOL/BTC raises concerns about the sustainability of its current price levels.
Implications for Solana’s Price – A Worrisome Trend
Despite initial optimism, Cowen’s forecast paints a grim picture for Solana. The cryptocurrency’s bullish momentum appears to have waned, with SOL’s price recently falling back to $110 before a temporary rebound to $161. Currently trading around $134, Solana has seen a 4% drop in the last 24 hours, prompting concerns about its long-term viability.
Cowen’s prediction is echoed by other analysts, including Bluntz, who highlights that Solana’s price could drop further if it doesn’t regain $195. This forecast aligns with a broader sense of unease within the crypto community, reflecting a growing caution among investors.
Also Read: Solana [SOL] Faces 21.7% Drop – Will Bitcoin’s Liquidity Run Spark A Short-Term Rebound?
Market Sentiment – A Cautious Outlook
Although Solana has experienced a rebound in price, the ongoing frenzy around meme coins on the blockchain has not been enough to sustain SOL’s value. The cryptocurrency has been on a downward trajectory since peaking at $210 five months ago. As market watchers keep a close eye on the situation, the possibility of a crash to $85 remains a serious concern.
In summary, while Solana’s price has shown some resilience, the similarities to Ethereum’s past patterns and the current bearish signals suggest that the road ahead could be fraught with challenges. Investors and market participants should remain vigilant as the potential for a significant price correction looms on the horizon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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