Economist Henrik Zeberg is optimistic about Solana (SOL), a key competitor to Ethereum (ETH), while anticipating a significant breakout in the broader altcoin market. In a message to his 171,400 followers on X, Zeberg suggests that Solana is poised for an upswing after experiencing a retracement.

Drawing from the Elliott Wave theory, Zeberg forecasts a substantial upward trajectory for Solana.

This theory suggests that assets typically undergo a five-wave rally, with the third wave representing the most significant and robust increase. According to Zeberg, "Altseason has begun and is about to enter its most explosive phase. Solana has been leading following a strong wave two pullback. It should now embark on its most powerful ascent toward its final target."

Currently, Solana is priced at $196, marking a 5.5% decline over the past week. Zeberg further posits that during this market phase, altcoins are likely to outperform Bitcoin (BTC). "Wave three in alts is now commencing. Brace yourselves," he advises.

The analyst anticipates a short-term increase in Bitcoin as the year 2025 begins. He elaborates, "BTC update! It has just touched down on the daily 50-day simple moving average. I still view this as a potential wave two within a rising wedge. This is my working hypothesis. A promising rally is expected into early January."

Bitcoin is currently priced at $98,871, unchanged on the day.