Cryptocurrency exchange Kraken says competitor Ethereum and smart contract platform Solana (SOL) could be competing for a strong rally in early 2022.
In a recent report, Kraken says that Solana has been trading within a large bullish pattern dating back to 2020.
According to the crypto exchange, Solana’s corrective move from its all-time high of around $ 260 puts Ethereum’s challenger in a position to start the next stage of its bull cycle.
“The fourth-ranked cryptoasset appears to be in the early innings of its fourth wave of ‘price discovery.’ Consequently, it appears in the early innings of a fourth wave of price discovery, potentially continuing the trend along the wedge pattern. “
Kraken adds that the recent Solana pullback can be seen as a bullish sign as the test of diagonal support could mean that SOL could be preparing for a rally.
“The rebound could be interpreted by many as not only ‘bullish’, but also as a sign that a test of wedge resistance could follow in the coming months.”
The report also explains why a long consolidation period is bullish for SOL.
“As with many other chart patterns, the longer it takes for SOL to trend up and at the same time retain the wedge’s uptrend line as support, potentially the higher SOL could travel before finally cooling down. and enter a downtrend. “
According to Kraken’s chart, an abrupt resurgence from Solana could propel the large-cap crypto asset above $ 600 by January 2022, suggesting a potential upside of more than 255% from its current price of $ 169.
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