Analyst Benjamin Cowen’s Warning
Renowned crypto analyst Benjamin Cowen has issued a cautionary note to altcoin investors. He highlights that historical patterns suggest a potential for further corrections in the altcoin market. In his latest YouTube video, Cowen analyzed the TOTAL3 chart, which tracks the market cap of all cryptocurrencies excluding Bitcoin (BTC), Ethereum (ETH), and stablecoins.
Cowen drew parallels between the current market trends and those observed in 2019. He explained, “You can see that in 2019, altcoins put in a low followed by a high. A similar pattern is evident in 2024: a low, then a high, followed by a decline back to a low, which eventually stabilized for a few weeks.”
He predicts that the market cap might drop to between $440 billion and $450 billion before stabilizing, akin to the 2019 trend. This forecast depends on the Federal Reserve’s ability to manage a soft landing for the economy without triggering a severe recession.
At the time of Cowen’s analysis, the TOTAL3 market cap was $520 billion, suggesting future uncertainty as it fluctuates within the anticipated range. Cowen’s insights are crucial for investors navigating the volatile altcoin landscape, emphasizing the importance of understanding these historical patterns for informed decision-making.
Cowen Highlights Ethereum’s Bearish Pattern
Cowen also expressed concerns about Ethereum (ETH), noting a bearish trend reminiscent of 2019. This pattern could potentially lead to a broader decline in the altcoin market.
As of writing, Ethereum is priced at $2,508, having fallen over 11% in the last 24 hours. This decline underscores the bearish sentiment surrounding Ethereum’s current market performance.
Bitcoin Price Update
Bitcoin saw a rise on Tuesday, recovering from significant losses in the previous session. In the past 24 hours, Bitcoin’s price increased by 4.2%, reaching $54,836. It had earlier dropped to as low as $49,000 before rebounding. This recovery aligns with broader crypto price movements and a general rebound in equity markets.
Solana (SOL) Performance
Solana (SOL) has experienced a strong recovery recently, with its price rising by over 20% to trade above $140. After dropping below $121 on Monday, the significant price drop led to a 245% increase in trading volume, indicating heightened investor activity. Currently, SOL is trading at $137, reflecting a 12.8% increase in the last 24 hours.
Cardano (ADA) Surge
Cardano (ADA) saw a notable price surge on Tuesday, trading at $0.3251. This represents the highest single-day percentage increase since December 13, 2023, when ADA rose by 14.32%. This upward movement boosted Cardano’s market cap to $11.66 billion, accounting for 0.60% of the total cryptocurrency market cap. In the past 24 hours, ADA’s trading range was between $0.3115 and $0.3323.
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