An increasingly popular crypto strategist believes that two decentralized finance (DeFi) tokens could be setting up for breakouts.
Pseudonymous analyst Cantering Clark tells his 161,400 Twitter followers that DYDX, the native asset of decentralized exchange (DEX) dYdX, is trading above a key support level around $2.84 and may be preparing to remove its diagonal resistance.
“I want to see DYDX really start to push here if this level is just a pit stop before moving on.”
In a new YouTube video, the analyst also says that DYDX’s market structure looks great, while many altcoins are starting to show signs of weakness.
“I’m thinking mainly about how this structure is supporting the top of a much larger structure… I would focus more on the fact that this is possibly a much larger breakout, and just want exposure here. [$2.84]. While [$2.84 holds]In my opinion, it looks very good.”
At time of writing, DYDX is trading at $2.94, still above the trader’s support area.
Another coin on the trader’s radar is the Synthetix Network (SNX), a DeFi platform that allows users to trade synthetic assets. According to Cantering Clark, SNX is another token “showing signs of strength” as it continues to find acceptance above the $2.54 support.
“No rejection really. The initial rejection, we’re floating back to now. It looks like you have a little upward push going on.”
At the time of writing, SNX is worth $2.83, well above the trader’s key level.
The crypto strategist too says that DYDX or SNX could “perform very well” in the next market cycle.
“Both SNX and DYDX continue to outperform last week, and in this recent bounce they capture more than the rest of the market.
Something tells me that at least one of these will work very well next cycle.”
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