Analyst Warns of Potential Solana Drop Echoing 2019 Market Patterns
Crypto analyst Benjamin Cowen has revised his forecast for Solana (SOL) amid current market fluctuations.
Cowen suggested that Solana might experience a significant decline if historical market trends from 2019 are repeated.
Cowen pointed to the TOTAL3 chart, which monitors the total market capitalization of cryptocurrencies excluding Bitcoin (BTC), Ethereum, and stablecoins.
He observed that altcoins surged in 2019 but subsequently fell sharply when the Federal Reserve shifted to a looser monetary policy. With the Fed expected to cut interest rates soon, a similar pattern might unfold.
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Cowen noted, “Altcoins had a strong rally but gave back most of their gains, much like what happened in the last cycle. The Fed’s more relaxed monetary policy led to a downturn in altcoins during the halving year and before it.” He expressed concern that Solana, which has not yet reached its all-time high, could face a similar sell-off.
Despite acknowledging Solana’s recent strong performance compared to Bitcoin, Cowen warned that if Solana follows past altcoin trends, it might experience a drop before potentially rallying again after the return of quantitative easing (QE).
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
