dailyhodl.com
A widely followed crypto analyst says that holders of smart contract platform Solana (SOL) may be due for the same pain Ethereum (ETH) traders felt during previous cycles.
In a new interview on the Crypto Banter YouTube channel, popular crypto trader Benjamin Cowen says that Solana paired against Bitcoin (SOL/BTC) is printing the same patterns that ETH/BTC did years ago before stagnating.
“A lot of these altcoins follow this pattern, and I want to show you this really interesting pattern by Solana…
It’s following the same pattern so far – look at ETH/BTC. This was a 90% drop followed by a 500% rally [and] right and after that 500% rally, ETH/BTC got this drop and this drop was essentially putting in higher lows.
It was putting in higher lows [and] everyone was calling for the flipping. It got [another] drop and then it had one more rally into the merge and then [it slowly descended until now]. Think about that chart – 90% down, 500% up, higher lows, fake out, one last rally.
And then look [at] SOL/BTC, it’s the same thing, it’s identical.”
Cowen goes on to note that traders shouldn’t panic if Solana sees a major dip as there’s a chance it will recover, just like ETH/BTC did. However, he notes the SOL/BTC pair may enter a lengthy downtrend after its recovery as well.
“If it breaks down, it doesn’t mean it’s over. You could have a scenario where it repeats what ETH/BTC did where it breaks down [and] people might think that’s the end.
But it could very well just pop right back up in 2025 – exactly what ETH/BTC did – and then start to fade out in 2026, so there’s a chance something like that happens.”
SOL/BTC is trading for $0.0021 BTC ($216) while ETH/BTC is valued at $0.038 ($3,921).