Crypto Analyst Predicts Solana Could Mirror Cardano Price Action

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The final crypto market has seen a decline within the final week, with most belongings recording important losses. Solana (SOL), probably the most distinguished cryptocurrencies, is down by 11.50% within the final seven days and 16.17% within the final month.

Curiously, widespread 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 keeping with an X put up on August 23, Benjamin Cowem believes Solana’s worth motion may be mirroring Cardano’s worth trajectory within the final crypto cycle.

Associated Studying: Solana Cuts Saga Value By 40%, However Case For New SOL Yearly Excessive Will increase

Primarily based on the weekly charts of each belongings, Solana presents a ranging market fairly similar to Cardano’s worth motion for many of 2019. In truth, in each charts, these ranging markets are preceded by a bearish pattern.

Good likelihood $SOL sweeps the lows, similar to $ADA did final cycle. pic.twitter.com/KHJEPdV6qU

— Benjamin Cowen (@intocryptoverse) August 23, 2023

Analyzing this knowledge, Cowen notes that SOL has just lately encountered resistance on the $26 worth zone, which is analogous to Cardano’s bother in crossing the $0.11 hurdle in mid-2019.

The analyst predicts that if Solana is certainly mimicking Cardano’s worth motion, it should seemingly expertise a downward pattern for the remainder of 2023.

In keeping 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.

Nevertheless, 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 do not forget that predictions should not assured and, thus, ought to be thought of as funding recommendation.

Solana, Amongst Others, Faces TVL Decline

In different information, the Solana community has recorded a 4.5% decline in its Whole Worth Locked (TVL) over the seven days primarily based on knowledge from DefiiLlama.

In keeping with the DeFi analytics web site, nearly all of the DeFi ecosystem seems to be underneath siege, with complete DeFi TVL having dipped under $40 billion and is at present valued at $37.56 billion.

Associated Studying: Cardano Holder Resilience Examined As ADA Fends Off Bearish Onslaught

Other than Solana, different distinguished networks resembling 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 present exchanging fingers at $20.59, with a 2.16% loss on the final day. Nevertheless, with a complete market cap of 8.39 billion, Solana stays the ninth-largest cryptocurrency available in the market.