Kraken, a San Francisco-based trading platform, is saying that a stern Ethereum (ETH) competitor and smart contract platform, Solana (SOL), is gathering momentum for a notable price surge, which could send its price beyond $600 by early 2022.
According to Kraken in a recently released report, Solana (SOL) has been trading within a large bullish pattern since 2020.
The crypto exchange added that the price correction which brought SOL’s price down from its all-time high of $260 puts the cryptocurrency in a better position to ignite the next leg of its bull cycle.
Kraken pointed out in a chart that the major correction could also be termed as a bullish signal, as the back-testing of the diagonal support could imply that Solana (SOL) is gathering momentum for a significant price surge.
The report reads in part as follows:
“The fourth-ranked crypto asset appears to be in the early innings of its fourth wave of ‘price discovery.’ Accordingly, it appears in the early innings of a fourth wave of price discovery, potentially continuing the trend along the wedge pattern…
“The bounce could be interpreted by many as not only just ‘bullish,’ but also a sign that a test of the wedge’s resistance could follow in the month(s) ahead.”
In the report, Kraken also explains why a long consolidation period is bullish for Solana (SOL)
“As with many other chart patterns, the longer it takes for SOL to trend higher while also retaining the wedge’s uptrending line as support, potentially the higher SOL could travel before ultimately cooling off and entering into a downtrend.”
Going by the chart provided by the crypto exchange Kraken, a sudden resurgence could send SOL above $600 by January 2022, which represents a potential uptrend of over 255% from its current price of $174.