The overall crypto market has seen a decline within the final week, with most belongings recording important losses. Solana (SOL), one of the vital distinguished cryptocurrencies, is down by 11.50% within the final seven days and 16.17% within the final month.
Curiously, well-liked crypto analyst, Benjamin Cowen has posted a puzzling prediction on Solana, drawing a lot similarity between the token’s present value motion and historic value knowledge of fellow altcoin Cardano (ADA).
SOL To Shut 2023 With Losses?
In line with an X submit on August 23, Benjamin Cowem believes Solana’s value motion may be mirroring Cardano’s value trajectory within the final crypto cycle.
Associated Studying: Solana Cuts Saga Worth 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 an identical to Cardano’s value motion for many of 2019. Actually, 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 value 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 value motion, it should possible expertise a downward development for the remainder of 2023.
In line with Cowen’s predictions, SOL might 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 might lose over 50% of its worth within the coming months.
Nevertheless, it’s price stating that Cowen’s value evaluation doesn’t spell all gloom for SOL traders. Upon falling to the $0.028 value zone in 2020, Cardano launched into a bullish run, gaining by over 7,600% within the subsequent two years. If Solana follows the identical value sample, the altcoin might commerce as excessive as $1,500 in 2025.
Traders ought to do not forget that predictions aren’t 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 line with the DeFi analytics website, nearly all of the DeFi ecosystem seems to be underneath siege, with whole DeFi TVL having dipped beneath $40 billion and is at present valued at $37.56 billion.
Associated Studying: Cardano Holder Resilience Examined As ADA Fends Off Bearish Onslaught
Except for Solana, different distinguished networks akin 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 present exchanging arms 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 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.