- Pendle crypto saw a 53% uptick in daily trading volume in the past 24 hours
- Despite the short-term volume surge, a sustained rally beyond $4.62 might be difficult in May
Pendle [PENDLE], the $700 million market cap DeFi token, has made bullish advances on its price charts over the past few weeks. Pendle crypto’s recovery from its long-term range lows at $2.2 seemed to be a sign of bullish belief.
At the time of writing, the token seemed to be heading towards the opposite end of the range. However, it still faces some major challenges.
PENDLE surpasses local resistance, targets $4.5 and $4.62 next
Source: PENDLE/USDT on TradingView
On the 3-day chart, Pendle was able to breach the bearish order block at $3.64. In doing so, it flipped the market structure on this timeframe from bearish to bullish. This structure shift came after a retest of the nearly 18-month-long range low at $2.2.
This range extended from $2.22 to $7, with the mid-range level at $4.62. PENDLE was trading at $4.28 at press time and was about to challenge the mid-range resistance.
A worrying sign was the drop-off in Pendle crypto trading volume over the past month. Even the breakout past the $3.64 resistance occurred on average trading volume. Despite the lowered trading volume, the OBV continued to march higher – A sign of bullish dominance.
At the time of writing, the MFI on the 3-day chart was nearing 80, but had not formed a bearish divergence yet. Overall, the higher timeframe bias remained bullish. A move past $4.62 would offer a buying opportunity, with a take-profit target price of $7.
Source: PENDLE/USDT on TradingView
The 4-hour chart revealed that momentum was bullish and a deep price dip may be unlikely. The OBV was on an uptrend on this timeframe as well. Pendle’s crypto price action exhibited an ascending channel formation (purple).
A short-term price dip to $4.2 might be possible to retest the mid-channel level before climbing higher once more.
The 2-week liquidation heatmap revealed that such a dip might not go too far south. There was a small pocket of liquidity at $4.2-$4.23, and another at $4.11. A larger magnetic zone lay to the north, at $4.5.
The $4.5-$4.55 region represented a more attractive target for the price. Combined with the momentum and buying pressure behind Pendle crypto on the 4-hour timeframe, it seemed likely that the price would rally higher once again. It could test $4.5 next, and also the mid-range level at $4.62.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
