A well-known 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 there is a possibility Solana is developing a cup-and-handle pattern, which could propel 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 before creating a smaller “handle” structure, indicating consolidation before a potential breakout.

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

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

“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, experiencing a slight decrease for the day.