SOL’s Potential Trajectory in 2023
On August 23, Benjamin Cowen shared his perspective, suggesting that Solana’s price movement could resemble Cardano’s trajectory in the previous crypto cycle. By examining the weekly charts of both assets, it becomes apparent that Solana’s price pattern closely mirrors Cardano’s movement during most of 2019. Remarkably, these periods of ranging markets are preceded by bearish trends in both cases.
Examining the data, Cowen highlights that SOL has encountered resistance around the $26 price level, much like Cardano’s struggle to surpass the $0.11 barrier in mid-2019. The analyst predicts that if Solana indeed mimics Cardano’s historical price action, it might experience a downward trend throughout the rest of 2023.
According to Cowen’s predictions, SOL could potentially drop to as low as $10 in 2023, analogous to Cardano’s plunge to $0.028 in early 2020. Should these projections materialize, the SOL market might witness a decline of over 50% in the upcoming months.
It’s important to note that Cowen’s price analysis doesn’t necessarily spell doom for SOL investors. After plummeting to the $0.028 range in 2020, Cardano embarked on a bullish rally, achieving a staggering growth of over 7,600% over the subsequent two years. If Solana follows a similar price pattern, the altcoin could potentially trade as high as $1,500 by 2025. However, investors must remember that predictions aren’t certainties and should be approached with caution in terms of investment decisions.
Solana’s Total Value Locked and Market Overview
Additionally, the Solana network has observed a 4.5% decline in Total Value Locked (TVL) over the past week, based on data from DefiiLlama.
Defi analytics reveal that a significant portion of the DeFi ecosystem is undergoing stress, with total DeFi TVL dropping below $40 billion and currently resting at $37.56 billion. Beyond Solana, other major networks like Ethereum, Cardano, and Polygon have also experienced declines in their TVL, with drops of 11.08%, 6.54%, and 8.89%, respectively.
At the time of writing, SOL is being traded at $20.59, reflecting a 2.16% loss in the last day. With a total market capitalization of $8.39 billion, Solana retains its position as the ninth-largest cryptocurrency in the market.