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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Veteran on-chain analyst Willy Woo says that altcoins will get continuously less explosive over time as the crypto market matures.

Woo tells his 1.1 million followers on the social media platform X that the current market cycle has been “markedly different” from the others given that it is the third time that altcoins are reaching for mindshare since 2017.

Rather than being focused on decentralized finance (DeFi) or some kind of technological innovation, Woo says that the current altcoin hype is mostly focused on memes, which he believes is a poor take on the crypto space.

Says the analyst,

“I’m not saying there won’t be alt seasons. Certainly there will be echo fractals of mid-caps and low-caps pumping after BTC pumps as investors chase returns higher up on the risk curve. This is a normal part of markets and we see this in equities. Just alt seasons will be weaker each cycle on from the great 2017 alt bubble.

Also, remember alt market cap is like the cricket bat that has had 10 new handles and 10 new blades, it’s the sum of all the new winners… losers don’t count to the market cap.

Trade it sure, if you want to play… don’t ever HODL (hold on for dear life) them unless you’re so knowledgeable that you’re an effective insider because alts are an insider’s game just like the casino where the house will eventually win. But you already know that.”

At time of writing, Bitcoin (BTC) dominance (BTC.D), which compares the market cap of Bitcoin to all other crypto assets, is valued at 59.38%, a three-and-a-half-year high.

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Analysts predicted that Ethereum price could exponentially increase as whales become more interested in the crypto asset, with whale activity hitting a six-week high.

Despite the projected growth, an Ethereum insider suggested that the cryptocurrency should address several key issues to ensure that it can continue to flourish.

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Ethereum: Projected Price Upsurge

Analyst Bаsictrаdingtv stated that prices of Ethereum could skyrocket as there is a growing interest among investors to buy the digital asset, saying that a 60% price hike is highly likely to happen.

Blockchain data analysis firm Santiment identified a spike in whale activity on the Ethereum network and recommended a potential purchasing spree.

According to their recent update, whale activity reached a six-week high, with average holders accumulating Ethereum after the con’s recent price decline.

🐳 Ethereum’s whale activity spiked to a 6-week high as its price declined as low as $2.38K Friday. Historically, this is a sign of accumulation from high capital key stakeholders. Though not a guarantee this will have an immediate effect on prices bouncing, it is encouraging! pic.twitter.com/zcofdvszLF

— Santiment (@santimentfeed) October 26, 2024

Projections shown by market observers suggested that Ethereum prices could soar and hit the $4,000 mark with some analysts forecasting that it might even breach the $6,000 level.

Ethereum price growth could be fueled by its growing appeal to whales as demonstrated in the six-week high whale activity wherein more than 6,400 new wallets were made by large investors.

Bаsictrаdingtv also agreed that Ethereum prices could reach the $4,000 level. However, he hinted that the possible bullish breakout would be invalidated if the ETH price dipped to $2,000, saying that this “pricе zonе” is a key indicator that should be kept an eye on.

Recalibrating Protocol For Growth

Meanwhile, Ethereum co-founder Vitalik Buterin said in a post that there are several issues that the cryptocurrency needs to address to thrive in the ever-evolving crypto space.

Buterin explained that one of these issues is to simplify its protocol and ensure its continuous growth, saying that the coin’s protocol has become more complicated and it already undermines Ethereum’s integrity and security. He said that simplification of the protocol could help address the said issue.

He explained that Ethereum has already implemented changes in the past, citing the removal of the SELFDESTRUCT opcode as an example. The SELFDESTRUCT opcode was known to complicate interactions among users and posed potential security risks.

However, Buterin cautioned that the removal of such features must be conducted in a systematic approach so developers could see the impact of such action before implementing the changes.

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Solving The Storage Problem

Another critical issue raised by Buterin is the storage problem being experienced by the cryptocurrency.

Buterin said that Ethereum needs at least 1.1 terrabytes of storage to house its enormous historical data.

He suggested the implementation of “cryptographic proofs of the state”, adding that this solution will allow nodes to retain only a fragment of the histories.

He added that this approach is the same as the torrent system wherein nodes only keep pieces of data that intersect from one node to another.

At the time of writing, Ethereum is being traded аt $2,470, a 2.84% price dip in the last 24 hours. On the other hand, ETH’s trаding volumе went up by more than 30% to nearly $22 billion in only a single day.

Featured image from Forbes, chart from TradingView