A widely known cryptocurrency analyst is updating his outlook on Solana (SOL), an Ethereum (ETH) competitor, amid the market turbulence.
In a new video update, crypto strategist Benjamin Cowen told his 808,000 YouTube subscribers that Solana’s value could plummet if market patterns similar to those seen in 2019 resurface.
Looking at the TOTAL3 chart, which tracks the total market cap of cryptocurrencies excluding Bitcoin (BTC), Ethereum, and stablecoins, Cowen shows that altcoins rallied in 2019 but then crashed that same year as the Federal Reserve implemented a looser monetary policy. The Fed is expected to cut rates next month after years of hikes.
“(Altcoins) had a nice little rally, but they’re giving a lot back, which is exactly what happened last cycle. They rallied. They rallied a lot, and then they gave it all back in the halving year. They gave it all back in the year before the halving, and then they went into the halving year. They gave it right back when loose monetary policy was introduced. A lot of that, a lot of that gains were given back. So you wonder if it’s doing the same thing. They’re still struggling to find a breakout here.”
Cowen noted that SOL has not yet reached its all-time high (ATH) and warned that a sell-off similar to what happened with other alternative cryptocurrencies in 2019 could occur.
“I applaud Solana for outperforming Bitcoin since 2023. Let me remind you that there are other altcoins that have made new all-time highs… (SOL) is still not technically a higher high… If you follow some of the altcoins that did very well in the QT rally last cycle, if you follow the whole process, there is essentially a selloff and then another rally after QE comes back.”
As of this writing, Solana’s price is $143, down more than 3% in the last 24 hours.
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