The price of Solana’s sol token has skyrocketed as this revolutionary blockchain initiative continues to gain traction leaving many other cryptocurrencies in the dust.
Kraken, a cryptocurrency exchange, predicts an even greater surge for Ethereum’s rival, expecting a huge climb for the token by early 2022. Solana has been trading within a large bullish trend that dates back to 2020 according to a recent report from Kraken.
Solana’s corrective dip from its all-time high of roughly $260, according to the crypto exchange, puts the Ethereum competitor in a position to start the second 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.”
Solana’s recent fall, according to Kraken, can be considered as a bullish indicator, as testing of the diagonal support could indicate that SOL is preparing 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.”
An extended consolidation period is bullish for SOL, according to the analysis.
“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.”
A rapid Solana recovery, according to Kraken’s chart, could push the large-cap crypto currency beyond $600 by January 2022, implying a potential gain of approximately 240 percent from its present price of $176.
Solana uses a combination of proof-of-stake (PoS) and proof-of-history (PoH) consensus processes to improve performance and scalability. As a result, the network claims to be the world’s fastest blockchain, capable of processing 50,000 transactions per second (TPS).