An expert in cryptocurrency trading who accurately predicted the Bitcoin (BTC) correction earlier this year believes that a decentralized finance (DeFi) altcoin is gearing up for a significant surge.
Using the pseudonym Rekt Capital, the analyst informed his 508,200 followers on X, a popular social media platform, that the native token of the yield tokenization protocol Pendle (PENDLE) appears ready to initiate a new uptrend.
The analyst shared a chart indicating that PENDLE has successfully retested the neckline of an inverse head and shoulders pattern on the weekly chart, suggesting that the altcoin is poised for upward movement.
“Technically, PENDLE has closed above the $4.48 (blue) level on a weekly basis.
Two weeks ago, PENDLE broke above the blue level as resistance.
Last week, PENDLE retested it successfully as support.
This week, PENDLE needs to maintain this level for a potential breakout.”
An inverse head and shoulders pattern is a bullish reversal formation indicating increasing demand for an asset as investors enter without waiting for prices to drop to previous levels.
Currently, PENDLE is trading at $5.04, showing a more than 9% increase in the last 24 hours.
Regarding the layer-1 protocol Solana, Rekt believes that SOL is likely to trend higher after successfully converting two resistance levels into support.
“SOL has closed the week on a bullish note.
Why? Because SOL closed above the combined resistance of the blue diagonal trendline and red box…
Seems like the retest post-breakout has been successful.”
Currently, SOL is priced at $179.77.
As for Dogecoin (DOGE), the analyst sees positive price action that could propel the popular memecoin to his target of $0.20.
“Dogecoin has successfully retested the support level at $0.14.
DOGE has surged by +26% since then.
Following the projected path accurately so far.”
At the moment, DOGE is trading at $0.175.
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Generated Image: Midjourney