Analyst Benjamin Cohen Identifies Altcoin with Potential for 50% Value Decline

Recent Developments: Cryptocurrency analyst Benjamin Cohen has indicated a potential scenario where one of the altcoins competing with Ethereum (ETH) could experience a value decline of over 50%, similar to what occurred with Cardano (ADA) during the previous market cycle. Cohen highlighted parallels between the current price movement of the native token of the Solana blockchain and ADA’s price chart from 2019-2020, suggesting the possibility of SOL’s price dropping to $10.

Further Insight: Cohen pointed out that SOL is on the verge of breaching a critical support level at $20.62. If this were to materialize, it could result in a significant 50% reduction in its value. He drew attention to a comparable price pattern that led ADA to plummet from $0.1 to $0.028 between May 2019 and May 2020.

As of August 24, at 16:50 MSK, SOL holds the 10th position in cryptocurrency rankings with a market capitalization exceeding $8.7 billion. It is trading at $21.61 on the Binance platform, marking a 4.3% increase over the past 24 hours.

Recent Development Insights: One contributing factor behind the recent day’s surge was the introduction of the EUROe stablecoin on the Solana network. Membrane Finance, the issuing company, is confident that this launch will draw an increased number of developers to the network, given that their asset fully aligns with the regulatory framework of the European Union.

Regarding Bitcoin, Cohen’s analysis indicates the possibility of the asset forming a “double bottom” pattern on its price chart, potentially leading to a descent within the range of $13,000 to $14,000. This anticipated drop could be followed by a subsequent resurgence in value, coinciding with the anticipated relaxation of the US Federal Reserve’s monetary policy in 2024.

An alternate scenario in the formation of this pattern could involve a decline to the range of $16,000 to $17,000, followed by a gradual recuperation leading up to a value of $24,000 by April of the ensuing year.

As of the most recent data, BTC is currently trading at $26,242, marking a 0.9% increase over the past 24-hour period.