Economist Henrik Zeberg believes that one Solana (SOL)-based memecoin could soon go on a parabolic rally.
Zeberg tells his 155,400 followers on the social media platform X that dogwifhat (WIF) may soar more than 913% from its current value after breaking out from a period of consolidation.
“WIF could be at $15-$22 in a matter of weeks.”
The analyst uses the Elliott Wave Theory to suggest WIF’s explosive price action in the near term. The Elliott Wave Theory is a type of technical analysis that examines wave patterns based on the repetitive behavior of market participants. According to Elliott Wave principles, an ABCDE triangle indicates consolidation in an uptrend market could spark a strong rally once it is completed.
“Are you onboard? It is breaking out of long ABCDE-consolidation. The potential is amazing.”
WIF is trading for $2.17 at time of writing, up 3.5% in the last 24 hours.
The analyst also says that the TOTAL3 chart on the weekly timeframe appears to be breaking out against Bitcoin (TOTAL3/BTC).
The TOTAL3 chart tracks the market capitalization of all crypto assets excluding Bitcoin, Ethereum (ETH) and stablecoins.
“Altseason is here! Alts begin to outperform BTC. Alts-BTC ratio has broken higher after bullish divergence and it has retested the trend line. Now we fly, or rather alts fly. WIF has taken then lead [September 24th]!”
According to the analyst, TOTAL3/BTC is breaking out after showing bullish divergence with the relative strength index (RSI), a momentum indicator. A bullish divergence often suggests that a reversal is in sight as the price of an asset trades lower or sideways while an indicator is witnessing higher lows.
A TOTAL3/BTC breakout suggests that the broader altcoin market is outperforming Bitcoin.
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Generated Image: Midjourney