Technical analysis by The_Alchemist_Trader_ about Symbol PENDLE: Buy recommendation (8/21/2025)

Pendle (PENDLE) is trading in a large equilibrium structure on the weekly time frame, with price action forming a potential bullish harmonic pattern. A sustained breakout could open the path toward $8 and higher. Pendle’s weekly chart shows a market consolidating within a broad equilibrium zone, where higher lows and lower highs continue to compress price. This type of structure often precedes major volatility expansions, as liquidity builds in both directions. Currently, price action is shaping what could become a bullish harmonic, hinting that the next decisive move may favor the upside. A corrective pullback remains possible in the near term, with $3.90 emerging as the key support region to watch. A retest and defense of this level would establish the “C-leg” of the developing harmonic, positioning Pendle for a potential rally higher into the “D-leg.” Such a structural progression would give bulls the technical foundation needed to challenge overhead resistance. Key Technical Points: - Massive Weekly Equilibrium: Price compressing between higher lows and lower highs, building energy for breakout. - $3.90 Support Zone: Key level for confirming the C-leg of the bullish harmonic pattern. - Upside Target at $8: Breakout requires strong volume above downslope resistance for continuation. The equilibrium structure provides clear boundaries for traders to monitor. While consolidation within this range may extend in the short term, the overall directional bias remains bullish as long as higher-time frame supports continue to hold. The repeated defense of key levels suggests buyers remain active, absorbing supply during corrective phases. The next major inflection point lies at the downslope resistance that has capped price in recent weeks. A breakout above this level, if backed by strong bullish volume, would confirm acceptance out of the equilibrium and open the door for expansion. In such a scenario, Pendle could target the $8 region as the next major resistance. Volume will play a critical role in confirming the validity of any breakout. Without above-average buying activity, a move beyond the downslope resistance could lack sustainability. Traders should watch for strong inflows at support or on a confirmed breakout to validate the bullish scenario. What to Expect in the Coming Price Action Pendle remains in a consolidation phase, with price trading inside a broad weekly equilibrium. A corrective dip toward $3.90 would be healthy if defended, as it would establish the base for a bullish harmonic completion. Should price then break the downslope resistance on strong volume, a rally toward $8 and beyond becomes the most probable outcome. Until that occurs, consolidation remains the dominant theme, but the structure continues to favor bulls in the weeks ahead