A broadly 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 the same 2019 market sample performs out once more.
Trying 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 a number of 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. A variety of that, a number of these positive aspects are given again. And so it’s important 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 might undergo 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 those who there are literally different alts that went on to new all-time highs…[SOL] continues to be technically not a better excessive… If it follows a few of the altcoins final cycle that did very nicely within the QT (quantitative tightening) rally, then if it have been to observe by way of the complete means then basically what would occur is that there can be a selloff after which there can 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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