Cryptocurrency exchange Kraken has predicted a strong 259% rally for Ethereum (CRYPTO: ETH) rival and smart contract platform Solana (CRYPTO: SOL) by early 2022.
What Happened: Solana remains in a massive broadening ascending wedge since 2020 and appears to be in the early innings of a fourth wave of “price discovery,” according to Kraken’s November 2021 Market Recap and Outlook report.
“Should Solana continue to follow this patten and re-enter price discovery mode, one could expect Solana to move north towards the about $600 resistance into the first quarter of 2022,” Kraken said in the report.
Solana’s pullback from its all-time high in November could be interpreted as a bullish signal, as per Kraken.
Kraken’s chart projects that Solana could touch the $600 level by January 2022, representing a massive 259% surge from its current price of $167.
See Also: How To Buy Solana (SOL)
Why It Matters: Solana is the fifth-largest cryptocurrency by market capitalization, as per CoinMarketCap data. The token is down 35.7% from its all-time high of $260.06 touched in early November.
Dubbed the “Ethereum Killer,” Solana uses a proof-of-stake and proof-of-history consensus to secure its blockchain. The cryptocurrency’s hybrid protocol allows for significantly decreased validation times for the execution of transactions as well as smart contracts.
Ethereum is the second-largest cryptocurrency by market capitalization. The Ethereum network implemented an upgrade called “Arrow Glacier” last week, which supports its transition to a “proof of stake” model and also delayed the so-called “difficulty bomb” implementation to June 2022.
Price Action: Solana is down 1.2% over the past 24 hours, trading at $167.23 at press time. Ethereum is down 0.5% during the 24-hour period to $4,031.51.