PENDLE Builds Momentum for Potential Breakout Above Resistance
Key Takeaways
- Breakout potential from the descending channel.
- Short-term correction before a possible rally.
- Crucial support levels around $3.05 and $2.85.
Pendle (PENDLE/USD) has been experiencing significant volatility, with macro and micro trends shaping its price movement.
The higher time frame (4-hour) chart highlights a broad descending channel and key support/resistance levels.
The lower time frame (1-hour) chart reveals a potential corrective wave is forming, which may dictate the next major move.
PENDLE Price Analysis
The 4-hour chart highlights a broad descending channel structure, which has dictated Pendle’s price movement since its $7 high on Dec. 6.
The recent recovery from a sub-$2.00 wick signaled the potential end of a corrective wave, leading to a breakout attempt.
Following this move, the price has rallied toward $3.70, approaching critical resistance from the descending channel.
The Relative Strength Index (RSI) remains neutral, suggesting there is room for further price action before overbought conditions emerge.
Additionally, Fibonacci levels outline key retracement zones, with $2.32 and $1.97 as significant supports. A successful breakout from the descending channel could pave the way for a test of higher resistance levels, particularly around $5.00, aligning with previous highs.
The higher time frame outlook remains bullish if the price maintains above $2.32. However, rejection occurred at $3.72, likely leading to a temporary pullback before further continuation.
PENDLE Price Prediction
On the 1-hour chart, Pendle has completed a five-wave impulse pattern forming a rising wedge, suggesting that a corrective phase is now in progress.
The chart indicates an ongoing ABC correction, with the “a” wave potentially finding support near $3.05 (0.382 Fibonacci level).
If the correction extends, the next major support levels lie at $2.84 (0.5 Fibonacci) and $2.64 (0.618 Fibonacci).
After the corrective phase, bullish continuation is expected, with wave (v) potentially targeting the $5.00 region.
A successful breakout above $3.72 would confirm this move, while the bullish scenario would be invalidated if the price falls below $2.32.
RSI on the lower time frame suggests declining momentum, supporting the likelihood of a temporary retracement before another upward push.
Key Levels to Watch
- Immediate Resistance: $3.72 (upper range resistance).
- Key Support: $3.05 (0.382 Fibonacci retracement).
- Critical Support: $2.32 (major horizontal support).
- Short-Term Target for Wave (v): Above $5.00 if breakout sustains.
- Invalidation Zone: Below $2.32, signaling deeper retracement.
Pendle’s outlook remains bullish in the longer term, but a short-term correction could provide better entry opportunities before the next impulsive move.
