The overall crypto market has seen a decline within the final week, with most belongings recording vital 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.
Apparently, 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 information 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 value motion is likely to be mirroring Cardano’s value trajectory within the final crypto cycle.
Associated Studying: Solana Cuts Saga Value 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 similar to Cardano’s value motion for many of 2019. In actual fact, in each charts, these ranging markets are preceded by a bearish pattern.
— Benjamin Cowen (@intocryptoverse) August 23, 2023
Analyzing this information, Cowen notes that SOL has not too long ago encountered resistance on the $26 value 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 value motion, it would possible expertise a downward pattern 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 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 may commerce as excessive as $1,500 in 2025.
Traders ought to keep in mind that predictions will not be assured and, thus, must 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 Whole Worth Locked (TVL) over the seven days based mostly on information from DefiiLlama.
In accordance with the DeFi analytics web site, nearly all of the DeFi ecosystem seems to be underneath siege, with whole 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
Apart from 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 arms 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