Why PENDLE crypto could rally another 12% if THESE signals hold

Pendle [PENDLE] has continued to ride the bullish wave it has been on for months. In the past 180 days, it has seen a 73% rally, while on a year-to-date basis, it’s up 12%, a sign that bulls have a strong foothold in the market.

While the present trajectory is bullish, it remains pertinent to understand the short-term outlook for the asset. Currently, there might be another surge similar to what has already been witnessed.

A classic pattern in formation

The pattern that has formed on PENDLE’s price chart suggests that the price still maintains the potential for a further upswing.

Price recently exited the right shoulder of the inverse head-and-shoulders pattern on the chart, overcoming the neckline resistance at $1.91, and it continues to swing higher.

This pattern often rallies by the depth of the decline, which is the distance between the neckline and the lowest level within the head structure, duplicating that move to the upside.

However, a more conservative target would be the $2.38 level on the chart, where there is a cluster of likely resistance. A surge to this level would mark an additional 12% gain from the price at press time.

If the momentum is sufficient, there is a high chance that the price continues to trend upward, potentially forming a new high for the year.