PENDLE's Rebound Potential and Key Technical Levels to Watch

PENDLE’s Rebound Potential and Key Technical Levels to Watch

The recent price action of Pendle (PENDLE) has sparked renewed interest among traders, with a 30.72% surge in 24 hours pushing the token to $5.163 as of September 3, 2025 [1]. While this rebound offers a glimmer of hope amid a 602% annual decline, the broader technical picture remains bearish. This analysis delves into the critical technical levels and Fibonacci confluence points that could determine whether PENDLE’s short-term rally translates into a sustainable recovery or another false start.

Technical Price Action: A Rising Wedge and Oversold Conditions

PENDLE’s price has formed a rising wedge pattern, a classic bearish continuation structure characterized by converging trend lines that slope upward [4]. The pattern suggests that the token is consolidating within a narrowing range, with key support levels around $4.50–$4.70 and resistance near $4.62–$4.68. A break below the lower trend line could validate the wedge and target a decline to $3.37–$3.91, while a breakout above the upper trend line might challenge the previous high of $6.30 [4].

The recent 24-hour rebound appears to stem from oversold conditions, as evidenced by the RSI(14) dropping to 40.65 [2]. While this indicates potential for a short-term bounce, the 50/200-day moving averages remain bearish, with the 200-day SMA at $3.73 and the 30-day SMA at $5.14 [3]. This divergence highlights the tension between short-term buying pressure and long-term downward momentum.

Fibonacci Confluence: Critical Levels to Monitor

Fibonacci retracement levels serve as a key framework for identifying potential reversal zones. PENDLE’s price currently hovers near the 0.236 Fibonacci level at $4.68, which coincides with the upper boundary of the rising wedge [4]. This confluence of support/resistance levels amplifies the significance of the $4.68–$4.70 range.

If PENDLE holds above this zone, the next target for bulls would be $5.50–$5.90, followed by the psychological high of $6.30 [4]. Conversely, a breakdown below $4.50 would trigger a test of the 0.382 Fibonacci level at $3.91, with further downside risk to the 0.5 level at $3.37 [4]. These levels are critical for traders to monitor, as they represent potential inflection points in the token’s trajectory.

Market Sentiment and Volatility

The Fear & Greed Index for PENDLE stands at 55 (Greed), suggesting that short-term optimism may be inflating the rebound [3]. However, the 30-day volatility of 10.77% underscores the market’s inherent instability [3]. This mixed sentiment reflects the broader crypto market’s tendency for rapid reversals, where technical indicators often act as both a guide and a trap.

Strategic Implications for Traders

For traders, the immediate focus should be on the $4.68–$4.70 confluence zone. A sustained close above this level could signal a short-term bullish reversal, warranting long positions with tight stop-loss orders below $4.50. Conversely, a breakdown below $4.50 would validate the bearish case, prompting short-term bearish strategies.

Longer-term investors should remain cautious, as the 200-day SMA and broader annual trend remain firmly bearish [3]. While the 0.236 Fibonacci level offers a tactical entry point for bulls, the risk-reward profile remains skewed toward downside unless PENDLE can decisively break above $6.30 and retest the all-time high of $6.30 [4].

Conclusion

PENDLE’s technical setup presents a high-stakes scenario for traders. The interplay between the rising wedge, Fibonacci confluence, and oversold RSI creates a pivotal moment for the token. Success in holding the $4.68–$4.70 zone could reignite bullish momentum, but a breakdown would likely accelerate the decline toward $3.37. As always, disciplined risk management and real-time monitoring of these levels will be paramount for navigating PENDLE’s volatile trajectory.

**Source:[1] PENDLE Up 30.72% in 24 Hours Amid Technical Rebound [https://www.ainvest.com/news/pendle-30-72-24-hours-technical-rebound-2509/][2] Latest Pendle (PENDLE) Price Analysis [https://coinmarketcap.com/cmc-ai/pendle/price-analysis/][3] Pendle (PENDLE) Price Prediction 2025, 2026-2030 [https://coincodex.com/crypto/pendle/price-prediction/][4] PENDLE Price Eyes Another Move Higher: Here's What Traders Should Watch [https://captainaltcoin.com/pendle-price-eyes-another-move-higher-heres-what-traders-should-watch/]