Crypto trade Kraken is saying that Ethereum competitor and good contract platform Solana (SOL) may very well be jockeying for a powerful rally by early 2022.
In a latest report, Kraken says that Solana has been buying and selling inside a big bullish sample courting way back to 2020.
According to the crypto trade, Solana’s corrective transfer from its all-time excessive of round $260 places the Ethereum challenger ready to ignite the following leg of its bull cycle.
“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.”
Kraken provides that Solana’s latest pullback may be seen as a bullish sign because the backtesting of the diagonal help might imply that SOL could also be gearing up for a rally.
“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.”
The report additionally explains why an extended consolidation interval is bullish for 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.”
Based on Kraken’s chart, an abrupt Solana resurgence might propel the large-cap crypto asset above $600 by January 2022, suggesting a possible upside of over 255% rally from its present price of $169.
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Featured Image: Shutterstock/Pavel Chagochkin
