The overall crypto market has seen a decline within the final week, with most belongings recording important losses. Solana (SOL), one of the outstanding cryptocurrencies, is down by 11.50% within the final seven days and 16.17% within the final month.
Apparently, well-liked crypto analyst, Benjamin Cowen has posted a puzzling prediction on Solana, drawing a lot similarity between the token’s present worth motion and historic worth knowledge of fellow altcoin Cardano (ADA).
SOL To Shut 2023 With Losses?
In accordance with an X post on August 23, Benjamin Cowem believes Solana’s worth motion is likely to be mirroring Cardano’s worth trajectory within the final crypto cycle.
Associated Studying: Solana Cuts Saga Worth By 40%, However Case For New SOL Yearly Excessive Will increase
Based mostly on the weekly charts of each belongings, Solana presents a ranging market fairly an identical to Cardano’s worth motion for many of 2019. In actual fact, in each charts, these ranging markets are preceded by a bearish development.
Good probability $SOL sweeps the lows, identical to $ADA did final cycle. pic.twitter.com/KHJEPdV6qU
— Benjamin Cowen (@intocryptoverse) August 23, 2023
Analyzing this knowledge, Cowen notes that SOL has lately encountered resistance on the $26 worth zone, which has similarities to Cardano’s hassle in crossing the $0.11 hurdle in mid-2019.
The analyst predicts that if Solana is certainly mimicking Cardano’s worth motion, it is going to possible expertise a downward development for the remainder of 2023.
In accordance with Cowen’s predictions, SOL may fall as little as $10 in 2023, simply as Cardano plummeted to $0.028 in early 2020. If these projections maintain true, the SOL market may lose over 50% of its worth within the coming months.
Nonetheless, it’s value stating that Cowen’s worth evaluation doesn’t spell all gloom for SOL buyers. Upon falling to the $0.028 worth zone in 2020, Cardano launched into a bullish run, gaining by over 7,600% within the subsequent two years. If Solana follows the identical worth sample, the altcoin may commerce as excessive as $1,500 in 2025.
Traders ought to keep in mind that predictions usually are not assured and, thus, ought to be thought-about as funding recommendation.
Solana, Amongst Others, Faces TVL Decline
In different information, the Solana community has recorded a 4.5% decline in its Complete Worth Locked (TVL) over the seven days based mostly on knowledge from DefiiLlama.
In accordance with the DeFi analytics website, nearly all of the DeFi ecosystem seems to be underneath siege, with whole DeFi TVL having dipped under $40 billion and is at the moment valued at $37.56 billion.
Associated Studying: Cardano Holder Resilience Examined As ADA Fends Off Bearish Onslaught
Apart from Solana, different outstanding networks comparable to Ethereum, Cardano, and Polygon have additionally seen their TVL plummet by 11.08%, 6.54%, and eight.89%, respectively.
On the time of writing, SOL is at the moment exchanging fingers at $20.59, with a 2.16% loss on the final day. Nonetheless, with a complete market cap of 8.39 billion, Solana stays the ninth-largest cryptocurrency out there.
SOL buying and selling at $20.52 on the weekly chart | Supply: SOLUSD chart on Tradingview.com
Featured picture from Binance Academy, chart from Tradingview.
