PENDLE technical analysis: Can it reach $5.78

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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Overview

Pendle ($PENDLE) continues to establish itself as a strong performer in the market, exhibiting bullish price action despite previous rejections from key resistance levels. Since our last analysis, Pendle was trading at around $4, and we observed that the accumulation zone ranged between $3.1 and $3.6.

Over time, Pendle has successfully bounced from this accumulation zone twice, particularly from the $3.6 level, showing strong support at this range, which was also confluenced by the 200 EMA.

As of now, Pendle has broken past the critical resistance level at $4.64, and after facing some rejection at the $5 psychological resistance, it is consolidating above the previous resistance zone. The market setup for Pendle is strong, and there is a clean space for price movement up to the $5.78 level, which is the next major resistance.

The asset has shown signs of breaking structure on the daily timeframe and remains in a bullish stance, making it a potential candidate for continued upward movement.

Current market outlook

On the daily timeframe, Pendle’s price has been trading with bullish momentum. The asset respected the previously identified accumulation zone between $3.1 and $3.6, using it as a base to propel itself higher. The support from the 200 EMA, previously at $3.8, also aided in Pendle’s bounce from this zone.

Pendle's price has since broken the $4.64 resistance level and is now consolidating just below the $5 psychological resistance. As Pendle consolidates, the technicals suggest that there’s potential for further upside, especially with the lack of significant resistance up to the $5.78 level.

The current structure also supports this bullish outlook, as Pendle has printed higher lows and higher highs on the daily timeframe.

Key levels:

Support zones:

• Accumulation Zone: $4.00 – $4.30
• 200 EMA on Daily: Around $3.82, acting as a strong support on the downside

Resistance zones:

• Immediate Resistance: $5.00 (psychological)
• Major Resistance: $5.78
• All-Time High (ATH): $7.53

Potential scenarios:

Bullish scenario (short to medium term):

• If Pendle continues to sustain above the $4.64 level, it is likely to target the $5.78 resistance zone. Given the current structure and price action, this could materialize in the coming weeks.
• A break and hold above $5.78 could open the door for Pendle to retest its ATH at $7.53.

Bearish scenario:

• A failure to hold the $4.64 support zone could see Pendle retrace back to the new accumulation zone, which lies between $4.00 and $4.30. This would offer traders another swing entry opportunity.
• A further breakdown could see Pendle test the 200 EMA at $3.82, which has historically provided strong support.

Cryptonary’s take

Pendle has been showing strength on the charts, holding above key levels and breaking out of important resistance zones. Its recent breakout of the $4.64 level is a good sign of potential continuation, but we remain cautiously optimistic.

Should Pendle maintain its position above $4.64, there’s a clear path for it to rally to $5.78 in the short term, with $7.53 as a medium-term target.

However, a break below $4.64 could provide opportunities for traders to accumulate in the $4.00 to $4.30 range. Additionally, the 200 EMA at $3.82 acts as another strong support zone should Pendle experience a larger pullback.

As always, it’s crucial to manage risk, especially with assets that have experienced strong rallies. Pendle looks solid for now, but traders should watch for confirmation above the key resistance levels to capitalize on the potential upside.

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