Tokenizing real-world assets (RWA) involves creating digital tokens on a blockchain that representing tangible ownership.
These tokens can be traded on the blockchain, providing a digital ownership representation for the corresponding real-world assets. In this article, BeInCrypto looks at three RWA tokens that have the potential for significant gains in 2024.
Pendle Leads RWA Tokens
PENDLE is a token that offers yield tokenization. It effectively allows users to trade both the asset and its yield.
Last week, the altcoin broke out from the $1.05 horizontal resistance area. This critical area has previously provided resistance for more than 800 days. Last week’s close was the first above this area since then.
The weekly Relative Strength Index (RSI) supports the ongoing breakout.
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.
Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.
Read more : What is The Impact of Real World Asset (RWA) Tokenization?
The RSI is increasing and is above 50. Additionally, it broke out from its bearish divergence trend line (green). This is a bullish development that often precedes price increases.
If the upward movement continues, the next resistance will be at $2.07. The resistance area is 90% above the current price, created by the 1.61 external Fib retracement of the previous drop.
PENDLE/USDT Weekly Chart. Source: TradingView
Despite this bullish PENDLE price prediction, a weekly close below the $1 horizontal resistance area will invalidate the breakout. A 50% drop to the $0.55 support area will occur in that case.
DUSK Clears Critical Resistance
The DUSK price has traded between $0.10 and $0.30 since March 2022. Both the range high and low have been validated numerous times.
In February 2023, the price was rejected by the $0.30 horizontal resistance area. It fell below a descending resistance trend line afterward and returned to the $0.10 support area.
In November 2023, the altcoin began an upward movement and broke out from the trend line. The increase accelerated last week, leading to a high of $0.19, slightly below the $0.20 resistance area.
The weekly RSI supports the continuing of the increase since the indicator just moved above 50.
If DUSK breaks out from the $0.20 area, it can reach the next resistance at $0.30. Cryptocurrency trader HaycheMac believes that the price will reach this level.
DUSK/Weekly Chart. Source: TradingView
Despite this bullish DUSK price prediction, if the price fails to break out above $0.20, a 40% drop to the $0.10 support area will be expected.
Centrifuge Breaks out From Long-Term Range
The CFG price has increased since the start of the year. Last week, CFG finally broke out from the $0.40 resistance area, which had been in place since April 2022.
Cryptocurrency trader Algos_in_crypto was one of the first to note this breakout, stating that:
“Not many are speaking on it but $CFG broke a >500 day range. @centrifuge.”
CFG/USDT Weekly Chart. Source: TradingView
The weekly RSI supports the breakout since the indicator is above 50 and moving upwards.
The first resistance area is at $0.70. If the altcoin continues to increase and breaks out, a 260% upward movement to the next resistance at $2 will be expected.
However, if a rejection from $0.70 occurs, CFG can fall by 30% to the previous long-term resistance at $0.40.
For BeInCrypto’s latest crypto market analysis, click here.
