Solana’s Potential Parallels with Cardano’s 2019 Movement
In a recent analysis, well-known crypto analyst Benjamin Cowen noted that Solana has demonstrated a slightly stronger performance compared to other altcoins due to significant capitulation towards the end of 2022. Cowen observed that SOL reached its lowest point early this year, followed by a substantial price surge that led to a subsequent decline after reaching a recent peak. He drew a parallel between this price action and Cardano’s movement in 2019:
“Solana’s ability to rebound after a decline akin to its recent bottom has piqued curiosity. While I’m uncertain about the likelihood, should it drop below the trend line around $16.5, it might experience a pullback to roughly $11.”
Cowen went on to draw a historical comparison: “Interestingly, this kind of significant downward movement reminds me of Cardano’s ADA in 2019. ADA also underwent a similar pattern, capitulating in price, followed by a rise, reaching a local peak, and then encountering a decline. The eventual recovery commenced after bottom sweeping.”
The long-term recovery process for Cardano began only after it had reached its lowest levels. Cowen’s perspective is that many altcoins might undergo pullbacks and reach bottom levels, potentially even dipping below these levels. This could even unfold prior to the eagerly awaited Bitcoin block reward halving.
The Current State of Solana
As per the latest CoinMarketCap data, SOL is currently trading at $24.62, reflecting a 6.37% increase within the past 24 hours. Over the last 7 days, SOL has witnessed a growth of 4.56%, and in the last 30 days, it has surged by 14.09%.
With a market capitalization of $9.98 billion, SOL holds the 8th position among the largest altcoins. Notably, its current price is 90.53% lower than its all-time high of $260.06.