Top crypto trader Benjamin Cowen thinks Solana (SOL) could be in for some rough days ahead before making a big turnaround.
Cowen tells his 784,000 YouTube subscribers that Solana has “a bit more resilient” than some other altcoins because of its heavy capitulation at the end of 2022.
The analyst notes SOL put in a low earlier this year, then put in a high, then “swept the high.” Cowen compares it to Cardano’s (ADA) price trajectory in 2019.
“I’m wondering if Solana’s now going to sweep the low. So if it breaks down below that trendline [around $16.50], which is an ‘if/then’ statement, I don’t know for sure if it would, but if it did break down below that trendline, then it makes me wonder — does it actually go on to sweep the low [around $11]?
Now I know that might be seen as a fairly bearish view, but I can’t help but remember the last cycle when ADA… did the exact same thing. It basically capitulated over here, put in a high, we then swept the high, and then we went down, and guess what? We swept the lows.
It was only after Cardano swept the lows that it then took off into a more sustained run. So I’m still thinking that there is a chance that a lot of these altcoins could fade back down and sweep some of their lows, maybe take those lows out. It could even occur as late as right before the halving.”
SOL is trading at $24.20 at time of writing. The 10th-ranked crypto asset by market cap is up nearly 5% in the past 24 hours.
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