2 reasons why Solana traders should watch out for the SOL/BTC trading pair!

• Analysts forecast a potential downturn for Solana, as the SOL/BTC pair continues to lag behind ETH/BTC
• If this anticipated drop materializes, it could echo across other SOL pairings

SOL/USD has recently faced challenges similar to other cryptocurrency pairs amid the broader market’s instability, dropping by 4.52% in the last 24 hours.In fact, at the time of writing, it was trading at $147.09, despite hitting a peak of $162 when the week began. 

Additionally, the SOL/BTC pair registered a decline from the week’s opening high of $0.0025359 to $0.0024544. This trend suggests vulnerability across various SOL pairs, which could suffer additional losses if analysts’ predictions prove accurate.

Bearish outlook for SOL?

Crypto analyst Benjamin Cowen recently highlighted in a tweet that SOL/BTC is mirroring the movements of ETH/BTC, raising concerns about the implications of this trend.

Cowen’s analysis was based on a shared chart that noted historical similarities for both pairs. ETH/BTC, after its peak in 2017, plummeted by 90%, only to surge by 500%. It is presently in another downward phase.

Similarly, SOL/BTC replicated this trajectory, suffering a 90% drop after achieving a new all-time high in 2021, followed by a 500% hike. If this historical pattern persists, SOL/BTC may face a major downturn which ETH/BTC is trading within by year’s end.

Source: X

However, despite this gloomy outlook, Cowen is optimistic about the pair’s long-term recovery after this corrective phase. 

According to him,

“[SOL will] bounce into 2025, before dropping again in 2026.”

AMBCrypto confirmed that such a correction would affect not only SOL/BTC, but also other SOL pairs like SOL/USDT and SOL/USD. These are more widely traded and thus, more vulnerable to similar declines.

SOL/BTC correction will affect other SOL pairs

A comparison of SOL/BTC (blue line) and SOL/USD (purple line) demonstrates that these assets have closely mirrored each other’s trajectories—Matching highs and lows despite occasional discrepancies.

The chart below illustrates this alignment in their price movements, showcasing a very similar overall trend. Entering a corrective phase, SOL/BTC could erase gains for both long-term traders and investors. 

Source: Trading View

However, If SOL/BTC manages to defy the prevailing trends seen in ETH/BTC by climbing to higher levels, then expect to see a corresponding hike across other related pairs as well.

Ascending triangle could shift the SOL/BTC narrative

At the time of writing, SOL/BTC was trading within a bullish ascending triangle pattern on the daily timeframe. 

This formation typically requires the price to remain within the pattern for an extended period, before potentially surging to higher levels.

Source: Trading View

AMBCrypto noted that this pattern is pivotal – A similar formation in 2021 was a precursor to SOL/BTC hitting a new all-time high (ATH) of $0.0046700.

Should this pattern persist, it could signify a break from SOL/BTC’s long-established correlation with ETH/BTC, potentially propelling it to new heights.