Pendle technical analysis: Can price break above $4.64 soon?

Overview

Pendle is one of the altcoins in a favourable position to capitalize on the bullish momentum of the broader market, especially with Bitcoin (BTC) showing strength.

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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Historical price action

Previously, Pendle had shown strong bullish movement with a rally that pushed the price to $4.64, the identified resistance level. However, the price was rejected at this resistance, leading to a retracement back to the demand zone at $3.10 - $3.61, where it eventually found solid support. The confluence of the grey box demand zone and the 200 EMA created a key area for buyers to step in, leading to a reversal and subsequent bullish candles being printed.

Current market outlook

As Pendle rebounds from the $3.10 - $3.61 zone, the price is now targeting the $4.64 resistance, a level at which it has previously been rejected.

Key observations:

• 200 EMA Support: The 200 EMA has been held as a crucial support, giving the price structure more confluence. Any sustained price action above this EMA suggests that the overall trend is still healthy and bullish.
• Trend Reversal: With Pendle printing bullish candles after its reversal from the demand zone, it confirms that buyers have gained control again.
• Next Resistance: The $4.64 level remains the critical resistance to watch. A breakout above this level would likely lead to a test of $5.78, followed by an attempt to challenge the all-time high (ATH) near $7.50 if bullish momentum continues in the broader markets.

Potential accumulation zones

Given the recent price action, the $3.10 - $3.61 demand zone (grey box) remains a solid area for long-term accumulation.

Key levels for accumulation:

• $3.10 - $3.61 (Grey Box): A strong support zone confluence with the 200 EMA.
• $4.64 Resistance Flip: If Pendle flips $4.64 into support, it may offer another entry point for those looking to capitalize on continued upside potential.

Cryptonary's take

Pendle continues to demonstrate healthy price action, especially with its recent bounce off the grey box demand zone and support from the 200 EMA. Given the broader market's current bullish sentiment, Pendle is positioned to move toward $4.64 and potentially beyond, provided the market remains favourable.

However, as always, caution should be exercised as altcoins can remain volatile. Accumulating in the $3.10 - $3.61 zone and waiting for a breakout above $4.64 could offer good risk-to-reward opportunities, but investors should remain mindful of broader market trends.