Date: Mon, June 16, 2025 | 06:16 PM GMT
The cryptocurrency market is making a strong comeback this week after suffering from volatility sparked by geopolitical tensions between Israel and Iran. Ethereum (ETH) has risen 3% to reclaim the $2,625 mark, and this broader market rebound is pulling several altcoins into the green — including Pendle (PENDLE).
The DeFi-focused token has posted impressive 9% gains today. Even more interestingly, its chart is signaling the emergence of a well-known “Power of 3” pattern — a possible precursor to a strong bullish continuation.
Power of 3 Pattern in Play
On the 4-hour chart, PENDLE appears to be forming the classic Power of 3 market structure, a technical concept closely associated with institutional “smart money” behavior. This pattern unfolds in three distinct phases:
Accumulation Phase
Between May 18 and June 13, PENDLE moved sideways within a narrow range between $4.69 and $3.83. This quiet period, characterized by low volatility and minimal directional bias, is often where institutions quietly accumulate their positions without tipping off retail traders. The range is visible as a rectangular zone on the chart.
Manipulation Phase
On June 13, the price broke sharply below the range support, dropping to a low of $3.42. This sudden drop likely triggered stop-losses and caused panic selling — a classic “manipulation” move aimed at flushing out weak hands before the real rally begins.
Expansion Phase
Immediately after bottoming out, PENDLE rebounded aggressively, reclaiming the key $3.83 level and pushing higher. This bounce marks the beginning of the Expansion Phase, where price moves sharply in the true direction of the trend. PENDLE is now testing the $4.69 resistance level, previously the top of the accumulation zone.
What’s Next for PENDLE?
If the token breaks and holds above $4.69, it would validate the breakout from the Power of 3 pattern and signal a continuation of the bullish trend. In this scenario, the next technical target sits near $5.96, a level derived from the height of the accumulation zone projected upward — indicating a potential 47% rally from the breakout point.
Overall, PEDNLE’s chart is showing early signs of a rebound, backed by a textbook setup. While global tensions remain a wildcard that could override technical patterns, the short-term outlook looks promising.
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