A extensively adopted crypto analyst is updating his outlook on Ethereum (ETH) competitor Solana (SOL) because the market chops round.
In a brand new video replace, crypto strategist Benjamin Cowen tells his 808,000 YouTube subscribers that Solana may plummet in worth if an identical 2019 market sample performs out once more.
Trying on the TOTAL3 chart, which tracks the entire market cap of crypto excluding Bitcoin (BTC), Ethereum and stablecoins, Cowen exhibits that alts rallied in 2019 however then plummeted that very same yr when the Federal Reserve enacted a looser financial coverage. The Fed is now anticipated to chop rates of interest subsequent month after years of hikes.
“[Altcoins] had a pleasant little rally, however they’re giving numerous it again, which is precisely what occurred within the final cycle. Altcoins rallied. They rallied so much, after which they gave all of it again within the halving yr. They gave all of it again within the pre-halving yr after which going into the halving yr. They gave it again proper across the time as that looser financial coverage arrived. Quite a lot of that, numerous these good points are given again. And so you need to surprise is it simply type of doing the identical factor. Alts are nonetheless struggling to interrupt by way of right here.”
Cowen notes that SOL hasn’t reached its all-time excessive (ATH) and warns it may undergo a sell-off much like what occurred to different alts in 2019.
“I tip my hat to Solana’s outperformance in opposition to Bitcoin since 2023 started. I’ll remind those who there are literally different alts that went on to new all-time highs…[SOL] continues to be technically not the next excessive… If it follows among the altcoins final cycle that did very properly within the QT (quantitative tightening) rally, then if it had been to comply with by way of the whole method then basically what would occur is that there could be a selloff after which there could be one other rally after QE (quantitative easing) returns.”
Solana is buying and selling for $143 at time of writing, down greater than 3% within the final 24 hours.
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