dailyhodl.com
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.
Generated Image: Midjourney