Could Pendle be gearing up for another bounce after the pullback? PENDLE price has seen some volatility, dropping by more than 25% in the past 10 days. The price now trades at around $4.60, following a little bounce earlier today. Could it be set for a bigger rally?
Ali, a popular crypto analyst on X, noted that the $4.50 area is an important support level for Pendle price. His analysis suggests that if this level continues to hold, the price has room to rebound toward the previous high of around $6.30. His chart sets the stage for this potential move and forms the basis of the current outlook.
Sentiment often follows price action. PENDLE lost ground fast and that drew attention. Traders watch how a bounce would form. A clean bounce would mean the market respected a key support zone. A failed bounce would open room for a deeper pullback to lower Fibonacci levels. The difference between those outcomes is the story for the next few weeks.
What you'll learn 👉
PENDLE Price Chart Explained: Ali’s Wedge and Fibonacci Levels
Ali’s chart shows a rising wedge. The wedge has two converging trend lines. Price tested the upper line near the $6.30 area on Aug 23. A recent drop pushed price down toward the lower trend line. Ali marked that lower trend line with an arrow. The arrow sits near a horizontal zone that matches a Fibonacci level.
Fibonacci lines on the chart read like this. 0.0 sits near $6.28. 0.236 sits near $4.68. 0.382 sits near $3.91. 0.5 sits near $3.37. 0.618 sits near $2.91. 0.786 sits near $2.31. Those lines come from the swing low to the swing high that created this rally.
The 0.236 level sits above the current price and the rising trend line cuts through that area. That creates confluence. Confluence means two technical supports land close together. Confluence often strengthens a support zone.
The dotted path that Ali sketched shows a series of higher lows that stay inside the wedge. The path points toward the $6.30 region again. The wedge shape implies tightening price action. Tighter action usually precedes a stronger move. The move could go up or down depending on whether that confluence holds.
How the PENDLE Price Could Bounce Back Toward $6.30
A simple way this plays out uses three steps. Step 1, support holds around the rising trend line near $4.50 to $4.70. Step 2, buyers test the middle resistance band near $5.5 to $5.9. Step 3, momentum pushes toward the previous high at $6.30.
The 0.236 Fibonacci at about $4.68 sits just above that midline. That makes the $4.50 to $4.70 zone the first gate to watch.
An analogy helps here. Imagine a stretched rubber band. Support around the trend line holds the band in place. A clean release can send the band back toward its previous peak. The same mechanics could apply to price if buyers step in near the trend line.
Key Risks That Could Stop the PENDLE Price Bounce
Failure to hold the trend line and the 0.236 band would change the map. A drop below $4.50 would likely bring the 0.382 level near $3.91 into focus. A deeper break could push price toward the 0.5 band near $3.37.
Read Also: Here’s How XRP Price Could Hit $637 if Bitcoin Reaches a $500 Trillion Market Cap
The wedge loses bullish strength if the lower trend line breaks decisively. Market participants often treat those Fibonacci levels as check points. Each level becomes a place where bidders or sellers might show up.
Ali’s chart frames two clear outcomes. One outcome favors a bounce that reclaims $6.30. The other points to a deeper retracement to the 0.382 and 0.5 bands.
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