In a recent tweet, Benjamin Cowen, a top-notch analyst and well-known trader in the crypto space, shared his insights on the future of Solana ($SOL).
According to Cowen, Solana is likely to “sweep the lows,” a term often used in technical analysis to describe a situation where an asset’s price revisits its previous low points before potentially rebounding. This phenomenon is particularly common among altcoins during what Cowen refers to as the “secondary scare for #BTC” or Bitcoin.
What Does This Mean?
When Cowen mentions “sweeping the lows,” he’s talking about a pattern where the price of an asset like Solana would go down to test its previous low points. This is often seen as a market test to gauge investor sentiment and liquidity at those levels. If the asset holds above these lows, it could indicate a potential rebound. However, if it breaks below, it could signal a bearish trend.
The “secondary scare for #BTC” refers to a situation where Bitcoin experiences a second significant drop in price after an initial decline. During such times, altcoins often not only revisit their previous lows but may even set new low records. This is because altcoins generally tend to follow Bitcoin’s price movements but can be more volatile, leading to sharper declines.
Cowen ends his tweet by stating that these are observations based on prior market cycles with other altcoins and should not be taken as guaranteed outcomes. He emphasizes that it’s a “fair warning” to investors to be cautious and do their own research.
So, if you’re invested in Solana or considering it, Cowen’s analysis suggests that you should be prepared for potential short-term price drops, especially if Bitcoin also experiences downward pressure. Always remember to do your own due diligence before making any investment decisions.
You can review our Solana price prediction here.
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