The whole #cryptocurrency market has fallen over the past week, with most assets suffering sizable losses. One of the most well-known cryptocurrencies, Solana (SOL), has fallen by 11.50% over the last week and 16.17% over the past month.
The token's current market movement and historical pricing data for sibling cryptocurrency Cardano are strikingly similar, according to famous crypto researcher Benjamin Cowen, who just wrote a perplexing forecast on Solana (ADA).
To End 2023 With Losses, SOL?
Benjamin Cowem speculated in an X post on August 23 that Solana's price movement may be imitating Cardano's price trend from the last crypto cycle.
Based on both assets' weekly charts, Solana has a range market that closely resembles Cardano's price behaviour for the majority of 2019. In reality, these range markets are preceded by a negative trend on both charts.
According to Cowen's analysis of this data, SOL has lately run into resistance at the $26 price region, which is comparable to Cardano's struggles to pass the $0.11 barrier in mid-2019.
If Solana is imitating Cardano's price movement, the analyst believes it will likely trend lower for the remainder of 2023.
In 2023, SOL may decline as low as $10, just like Cardano did in early 2020, according to Cowen's forecasts. The SOL market may lose more than 50% of its value in the upcoming months if these estimates come true.
It is important to note that Cowen's pricing analysis does not necessarily portend doom for SOL investors. After declining to a price range of $0.028 in 2020, Cardano went on a bullish run and increased by more than 7,600% over the next two years. Solana might trade at a high of $1,500 in 2025 if the altcoin maintains its current trend.
Predictions are not guaranteed, thus investors should be aware that they should not be regarded as financial advice.
Among others, Solana Confronts TVL Decline
In other developments, according to statistics from DefiiLlama, the Total Value Locked (TVL) for the #Solana network over the past seven days has decreased by 4.5%.
The majority of the DeFi ecosystem looks to be under attack, according to the DeFi analytics site, with total DeFi TVL having fallen below $40 billion and being valued at $37.56 billion right now.
Related Reading: ADA Fends Off Bearish Onslaught as Cardano Holder Resilience is Tested
Together with Solana, other well-known networks like Ethereum, Cardano, and Polygon also had a sharp decline in TVL of 11.08%, 6.54%, and 8.89%, respectively.
As of the time of writing, #SOL is trading at $20.59, down 2.16% from the previous day. Nonetheless, Solana continues to be the ninth-largest cryptocurrency on the market with a total market worth of $8.39 billion.
