The price of Pendle (PENDLE) has been rejected by a long-term resistance zone and is currently trading within a short-term downtrend pattern. It is expected to continue decreasing in the near future.
Weekly Outlook
The Pendle price has decreased since being rejected by the long-term resistance zone at $1 during the week of July 3 to 9, 2023. In the following two weeks, PENDLE formed an evening star pattern (green ellipse). This is a bearish pattern, which usually appears at the end of an uptrend.
Indeed, the price broke below the pattern’s lowest point and confirmed it as resistance two weeks ago (red arrows).
This confirms that PENDLE has formed a peak, and a significant downtrend is likely to follow.
The weekly RSI (Relative Strength Index) supports this possibility, showing a significant bearish divergence and a downward slope.
Therefore, the PENDLE price might decrease to the important support zone at $0.36 in the near future. This corresponds to a 46.19% decrease from the current price level.
Ascending Parallel Channel
The daily chart reveals that the PENDLE price has been trading within an ascending parallel channel since the bounce on August 17. This indicates it’s merely a relief rally within the overall downtrend, and a breakdown is anticipated.
This outlook is further reinforced as the price was rejected from the channel’s midline on October 17 (red arrows).
A breakdown from the channel could take the price down to the next support zone at $0.51.
Conclusion
Technical prospects indicate that the PENDLE price has peaked. It is expected to decrease to $0.51 and potentially even lower to $0.36 in the near future.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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