Ethereum ($ETH) rival Solana ($SOL) could see its price soar in the near future after breaking out from a key chart pattern on its four-hour chart, to potentially as high as $150 to $165 per token.
According to popular cryptocurrency analyst Ali Martinez, the price of Solana could surge an additional 47% if it manages to close above the $106 mark sustainably. The move would see it propel to up to $165.
A bull flag is a chart pattern that shows up when the price of an asset is rising fast and is likely to keep on going up. It resembles a flag with a pole, with the pole being a sharp increase in the stock price and the flag being a pause or pullback occurring shortly after.
The key thing to understand about this pattern is what it means for the market sentiment. It shows that even after a big jump, the asset does not lose much value, because there are still many buyers who want to get in. Often when there’s a breakout out of the bull flag, the price surges again.
Solana’s price is up more than 480% over the last 12 months as the cryptocurrency has been recovering from the collapse of cryptocurrency exchange FTX, whose founder Sam Bankman-Fried was a staunch supporter of, leading the token and its ecosystem to be affected by association. Bankman-Fried was recently found guilty on counts of wire fraud and money laundering.
Solana’s ecosystem has been seeing growing adoption, with its Saga smartphone, which once faced sluggish sales, selling out recently over a lucrative 30 million BONK token airdrop for each new owner of the phone.
Analysts believe SOL’s price may keep on rising, however, with a popular cryptocurrency strategist who has gained a large following on social media after accurately calling Bitcoin’s 2018 bear market bottom above $3,000, predicting a major surge for it in the near future.
Featured image via Unsplash.
