According to Kraken, a San Francisco-based trading platform, Solana (SOL), a fierce Ethereum (ETH) competitor and smart contract platform, is gaining traction for a significant price increase that could push its price past $600 by early 2022.
Solana (SOL) has been trading within a huge bullish trend since 2020, according to Kraken in a new analysis.
The crypto exchange went on to say that the price correction that pulled SOL’s price down from its all-time high of $260 has put the cryptocurrency in a stronger position to start the next leg of its bull cycle.
The huge pullback might also be considered a bullish signal, according to Kraken, because the back-testing of the diagonal support could indicate that Solana (SOL) is gaining momentum for a significant price increase.
The following is an excerpt from the report:
“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 the fourth wave of price discovery, potentially continuing the trend along with the wedge pattern…
Many analysts believe the recovery is not only ‘bullish,’ but also an indication that the wedge’s resistance will be tested in the coming months.
In the report, Kraken also explains why a long consolidation period is bullish for Solana (SOL)
The longer SOL continues to trend higher while simultaneously maintaining the wedge’s uptrending line as support, the higher SOL might go before cooling off and becoming a downtrend, as with many other chart patterns.
According to the Kraken chart, a rapid revival may push SOL beyond $600 by January 2022, representing a potential rise of more than 255 percent from its current price of $174.