Pendle Rises 4% as Harmonic Pattern Suggests 25% Gain

Pendle (PENDLE) has emerged as a notable candidate for a significant rally, with key harmonic patterns suggesting a potential upside move. The cryptocurrency market has recently surpassed $4 trillion in total market capitalization, with Ethereum (ETH) leading the charge with 20% weekly gains and trading near $3,650. This bullish momentum has extended to major altcoins, including Pendle, which has risen 4% over the day, extending its 30-day rally to 16%.

The developing harmonic structure on Pendle's daily chart is generating significant buzz. On the daily timeframe, Pendle is currently tracing a Bearish ABCD harmonic pattern. Despite its name, this pattern often signals bullish continuation during the CD leg before a potential reversal at the final target. The pattern began from point A near $2.37 in April, rallying to point B around $4.72. It then retraced to point C near $3.10 in late June, before beginning a fresh upward move. Pendle now trades around $4.37, steadily progressing along the CD leg.

If the pattern completes as projected, the 1.452 Fibonacci extension of the BC leg suggests a potential move toward $5.45 — a level aligning with the AB leg’s length and marking the Potential Reversal Zone (PRZ), where traders typically expect resistance or profit-taking. This harmonic pattern is a specific price structure that can indicate potential reversal points in the market, based on Fibonacci numbers. Traders use these patterns to identify high-probability trading opportunities.

In addition to the harmonic pattern, other technical indicators also support the bullish case for Pendle. The Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, is currently in the oversold territory. This indicates that the selling pressure on Pendle may be waning, and a reversal could be imminent. The Moving Average Convergence Divergence (MACD), another popular technical indicator, is also showing bullish signals, with the MACD line crossing above the signal line.

Market sentiment also plays a crucial role in determining the price movements of cryptocurrencies. The Fear and Greed Index, a measure of market sentiment, is currently in the "greed" zone, indicating that investors are optimistic about the market. This positive sentiment could provide the necessary momentum for Pendle to rally higher. Additionally, social media sentiment analysis shows a high level of interest and positive sentiment towards Pendle, which could further fuel the rally.

However, it is important to note that the cryptocurrency market is highly volatile, and price movements can be unpredictable. While the harmonic pattern and technical indicators suggest a potential upside move for Pendle, there is no guarantee that the price will move as expected. Investors should exercise caution and conduct their own research before making any investment decisions. It is also advisable to set stop-loss orders to manage risk and protect against potential losses.

If momentum holds, Pendle could gain another 25% before testing the $5.45 zone. Traders should watch for signs of profit-taking at this level, though the overall structure remains supportive of near-term upside as long as the broader market trend stays bullish. With crypto sentiment firmly in favor of buyers and Pendle forming one of the clearest harmonic setups among mid-cap tokens, the path higher still looks open — at least until the PRZ is reached.