- PENDLE crypto netted 43% recovery gains in the past 30 days of trading.
- Looking into key market re-entry points as whales trimmed their exposure.
Pendle [PENDLE] extended its October recovery and hit a new monthly high of $5.13, tapping 43% in the past 30 trading days.
However, the $5 psychological level has been a critical resistance in the past, can it decidedly crack it?
PENDLE crypto hits a hurdle
Source: PENDLE/SUDT, TradingView
At press time, the roadblock had already attracted short sellers, as seen by the red daily candlestick. This could accelerate profit-taking from short-term holders.
Additionally, key technical chart indicators flashed overbought conditions, suggesting a potential pullback. But PENDLE has been making higher highs and higher lows, painting a bullish market structure.
As such, it made sense to go long on the asset rather than shorting it. There were two possible long scenarios.
First, a re-entry at the short-term support above $4 and the 50-day EMA (blue line), with a bullish target at $5. This would offer a 23% potential gain, but only if PENDLE retraced to $4.
The second scenario would be a retest and flipping of $5 to support (marked white), allowing bulls to eye the $6 target. Such a move could offer an 18% potential gain.
A crack below $4 would invalidate the long position; hence, a stop loss could be placed just below it.
