Crypto analyst Benjamin Cowen has issued a warning to investors, cautioning that Cardano (ADA), Solana (SOL), and Polygon (MATIC) could face significant losses against Bitcoin (BTC) in the near future. Cowen, who has a large following on Twitter, bases his prediction on historical price action.
Starting with Cardano (ADA), Cowen believes that the Ethereum competitor could see a decline of over 50% against Bitcoin (ADA/BTC), similar to what occurred in 2019. He points out that four years ago, ADA/BTC was at 900 sats, the same level it is currently trading at. However, within five to six weeks, it dropped to 400 sats, highlighting the potential volatility of altcoins. Cowen emphasizes that the “altcoin reckoning can be brutal” and advises investors to exercise caution with ADA.
Solana (SOL) is another altcoin that Cowen warns could face challenges against Bitcoin (SOL/BTC). He notes that SOL has followed a pattern for the past two years, where it experiences rallies only to see new lows against Bitcoin. Cowen suggests that investors may be drawn in by these pumps, only to be disappointed when the price eventually fades. As of now, SOL/BTC is trading at $0.000538 BTC ($16.33 USD).
Polygon (MATIC) is the third altcoin that Cowen cautions investors about. He highlights that MATIC/BTC is currently trading in the lower bounds of a price range, and if it dips below the $0.0000170 BTC level, there may not be enough support to prevent a collapse. The chart provided by Cowen shows a potential downtrend for MATIC. At the time of writing, MATIC/BTC is valued at $0.0000208 BTC ($0.63 USD).
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It is essential to note that these predictions are based on historical price action and do not guarantee future performance. Crypto markets are highly volatile and can be influenced by various factors, including market sentiment, news events, and overall market conditions. Therefore, investors should conduct their own research and due diligence before making any investment decisions.
While Cowen’s warnings sound alarming, it is crucial to consider other perspectives and analyze the broader market trends. Cryptocurrencies are known for their volatility, and while some altcoins may experience significant drops against Bitcoin, others may see substantial gains. The market can be unpredictable, and it is important to diversify one’s investment portfolio to mitigate risk.
Investors should also be aware that investing in cryptocurrencies involves a high level of risk. Crypto assets are speculative in nature, and losses can occur. It is advisable to consult with a financial advisor or do thorough research before committing any funds to these volatile assets.
In conclusion, Benjamin Cowen’s warnings about Cardano, Solana, and Polygon facing potential losses against Bitcoin should be taken into consideration as part of a comprehensive analysis. However, investors should also consider other factors, conduct their own research, and evaluate their risk tolerance before making any investment decisions in the crypto market.
