The cryptocurrency market remains a rollercoaster ride, but amidst the volatility, Pendle (PENDLE) is making a name for itself. In a surprising overnight surge of 9.12%, the altcoin surpassed the $5 milestone, igniting investor interest and sparking speculation of a bullish marathon.
This price jump isn’t a one-off event. Pendle has been steadily climbing for the past week, with a total increase of 21%. This bullish reversal signifies the end of a pullback phase and hints at a potential new all-time high. With the market capitalization rapidly approaching the coveted billion-dollar mark, the question on everyone’s mind is: can PENDLE reach $10?
Technical Analysis Paints a Bullish Picture
Examining Pendle’s price chart reveals a compelling story. The price action decisively broke the downtrend at $4.65, forming a bullish reversal pattern. Furthermore, a “morning star” pattern has emerged on the daily chart, a technical indicator often associated with bullish continuations.
Zooming into the shorter 4-hour timeframe, we see the price decisively break through a resistance trendline. This not only confirms the end of the lower-high formation but also surpasses the previous resistance level of $5.70.
Indicators Signal Strengthening Momentum
The bullish sentiment is further reinforced by technical indicators. The Relative Strength Index (RSI) on the daily chart is trending upwards and has crossed above the 50 mark, signifying increasing bullish momentum. Similarly, the 4-hour chart reveals a rising 50-day Exponential Moving Average (EMA) poised for a potential “golden crossover” with the 200-day EMA. This crossover is a strong technical indicator often used to confirm an uptrend.
Also Read: Pendle (PENDLE) Dips 30% Despite Arthur Hayes Locking Up 1.65M Tokens: Bullish Sign?
Fibonacci Levels: A Glimpse into the Future?
The recent surge has propelled PENDLE beyond the crucial 50% Fibonacci retracement level of $5.51. Combined with the strong momentum and bullish technical patterns, this suggests a significant uptrend is in play. Based on Fibonacci levels, the next potential target for PENDLE could be a rally towards $9.16, aligning with the 1.618 Fibonacci extension level.
A Word of Caution: Market Volatility Reigns Supreme
While the technical analysis paints a promising picture for PENDLE, it’s crucial to remember that the cryptocurrency market remains highly volatile. Unforeseen events or broader market shifts can quickly reverse the current trend. Investors should always conduct thorough research and implement sound risk management strategies before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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