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 might plummet in worth if an identical 2019 market sample performs out once more.
Wanting on the TOTAL3 chart, which tracks the whole 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 quite a lot of it again, which is strictly what occurred within the final cycle. Altcoins rallied. They rallied rather a lot, 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. Lots of that, quite a lot of these positive factors are given again. And so you must surprise is it simply type of doing the identical factor. Alts are nonetheless struggling to interrupt by means of right here.”
Cowen notes that SOL hasn’t reached its all-time excessive (ATH) and warns it might endure a sell-off just like what occurred to different alts in 2019.
“I tip my hat to Solana’s outperformance towards Bitcoin since 2023 started. I’ll remind people who there are literally different alts that went on to new all-time highs…[SOL] remains to be technically not a better excessive… If it follows a number of the altcoins final cycle that did very nicely within the QT (quantitative tightening) rally, then if it had been to observe by means of the complete manner then primarily 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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