A prominent cryptocurrency analyst suggests that Solana (SOL), a smart contract platform, may be forming a bullish technical pattern that could result in a surge of over 1,700%. In a recent strategy session, crypto trader Ali Martinez informed his 108,000 followers on the social media platform X that Solana may be developing a cup-and-handle pattern, potentially driving its price to astronomical levels.

Martinez stated, “There’s a chance SOL is forming a cup-and-handle pattern, and it will reach $4,000!”

A cup and handle pattern typically occurs when the price movement of an asset forms a “cup” pattern, followed by a smaller “handle” structure, indicating consolidation before a possible breakout.

As of the time of writing, Solana is trading at $215, reflecting a 1.3% decrease in the last 24 hours. If Solana were to reach Martinez’s target price, it would signify an astonishing 1,760% increase.

Moving on to Bitcoin (BTC), the leading digital asset, Martinez pointed out that Coinbase’s Premium Index, which tracks the price premium for BTC on Coinbase and indicates its demand in the US, suggests a growing institutional demand for the top cryptocurrency in America.

“The Coinbase Premium Index recently hit -0.23%, a two-year low, but it’s now rebounding quickly. This signals growing institutional demand for BTC from US-based investors!”

At the time of writing, Bitcoin is trading at $98,137, showing a marginal decrease for the day.