Benjamin Cowen, founder of ITC Crypto, has sounded the alarm on Solana (SOL) price direction, warning of a potential crash to $85. Cowen’s analysis shared on X, reveals striking similarities between SOL/BTC and ETH/BTC trading patterns, suggesting a major correction before year-end.
Historical Context: Ethereum’s Price Pattern
In 2018, ETH/BTC experienced a drastic 90% drop, followed by a late 2020 uptrend, resulting in a remarkable 500% rebound by the end of the 2020/2021 cycle. However, this robust recovery was short-lived, giving way to a consolidation phase and another correction. Understanding this historical context is crucial in grasping the potential implications for Solana’s price.
SOL/BTC appears to be mirroring ETH/BTC’s historical movements. After a 90% drop from its 2021 peak, SOL/BTC bottomed out in mid-2023 and has since rebounded by over 500%. While the dump and rebound magnitudes are comparable, the consolidation phase observed in ETH/BTC is notably absent in SOL/BTC. This omission raises concerns about Solana’s ability to sustain its current price levels.
Implications for Solana’s Price
Despite widespread optimism, Cowen’s analysis suggests discouraging price action for SOL/BTC for the rest of 2024. SOL’s bullish momentum has already lost steam, with its price revisiting $110 this month before a notable rebound to $161.
At the time of press, SOL hovers around $134, down 4% in the last 24 hours. This downward trend has sparked concerns among investors, who now question Solana’s long-term viability.
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Cowen’s projections align with other analysts, including Bluntz, who cited significant reasons supporting a further decline in SOL/BTC. This could put Solana’s dollar value at $85, a prediction that has faced resistance but remains a possibility.
Bluntz notes that the “crisis” could only be averted if Solana reaches $195 again. The convergence of these predictions underscores the growing unease within the crypto community.
Market Watchers Sound the Alarm
While Solana’s price has experienced a notable rebound, analysts remain cautious. The ongoing meme coin frenzy on the Solana blockchain has failed to sustain SOL’s price, which has been facing downtrend since hitting $210 five months ago. As the market watches, one thing is clear – Solana’s price trajectory hangs in the balance, with a potential crash to $85 on the way.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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