A crypto strategist who accurately called the Bitcoin (BTC) correction earlier this year thinks a decentralized finance (DeFi) altcoin is getting ready to erupt.
Pseudonymous analyst Rekt Capital tells his 508,200 followers on the social media platform X that the native asset of the yield tokenization protocol Pendle (PENDLE) looks poised to start a new uptrend.
The analyst shares a chart suggesting that PENDLE has successfully retested the neckline of an inverse head and shoulders pattern on the weekly chart, indicating that the altcoin is in a position to move higher.
“Technically, PENDLE has performed a good weekly close above the $4.48 (blue) level
Two weeks ago, PENDLE broke blue as resistance.
Last week, PENDLE successfully retested it as support.
This week, PENDLE needs to continue holding here to lift-off.”
An inverse head and shoulders pattern is a bullish reversal structure suggesting that demand for an asset is on the rise as investors pile in without waiting for price to revisit recent lows.
At time of writing, PENDLE is trading for $5.04, up over 9% in the past day.
Looking at the layer-1 protocol Solana, Rekt thinks SOL is on track to move higher after flipping two resistance levels as support.
“SOL has actually performed a bullish weekly close.
Why? Because SOL weekly closed above the confluent resistance area that is the blue diagonal trendline and red box…
Looks like the post-breakout retest has been successful.”
At time of writing, SOL is worth $179.77.
As for Dogecoin (DOGE), the analyst thinks the altcoin is flashing constructive price action that would send the top memecoin to his target at $0.20.
“Dogecoin has successfully retested the red level ($0.14) as support.
DOGE has since rallied +26% to the upside.
Following the orange pathway perfectly thus far.”
At time of writing, DOGE is trading for $0.175.
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Generated Image: Midjourney
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