Pendle (ETH: $PENDLE) has shown strong performance in recent weeks. In the last 7 days, the token has gained 18.54%. Despite a 4.02% dip in the last 24 hours, market sentiment remains positive. At the time of writing, Pendle was trading at $3.00 and ranks 100 by market cap.
The project’s market capitalization stands at $486.31 million, slowly approaching $ 500 million. Trading volume reached $54.85 million, although this marks a sharp 43.76% drop in the last 24 hours.
Pendle sits at the intersection of DeFi and yield trading. It enables the tokenization and exchange of future yield from yield-bearing crypto assets. The protocol separates ownership of an asset from its future yield. Users can then trade this yield as a standalone financial instrument.
At the peak of Pendle is a unique automated market maker (AMM). This AMM supports assets with time decay. It allows for accurate pricing of future yield, even when conditions fluctuate. This opens up options for both immediate liquidity and speculative trading.
Through this structure, Pendle empowers liquidity providers and investors. Users can choose to cash in future yields now or hold positions for potential returns. It brings flexibility to managing crypto income streams. The platform also helps users hedge risks or optimize yield strategies.
Pendle’s design represents a leap forward in DeFi innovation. It turns passive yield into active tools for trading and risk control. Traders can build positions based on expectations of future earnings from DeFi assets.
Technical Analysis: Bulls Hold the $2 Support Level
Pendle has been trading within a ranging channel between $2 and $7 since March 2024. After recording a new ATH at $7.5 in April 2024, the token has retraced back to $2. This level has now established itself as a stronger support level, with the price getting multiple rejections between April 2024 and now.
The recent bounce from $2 has reignited bullish momentum in the last 30 days. Price has surged over 20% from that low in just one month. This rebound suggests buyer interest around the support zone. If this strength holds, the price could revisit the resistance near $7.
PENDLEUSD Chart: TradingView
The price pattern signals a sideways channel. This may persist for a while if market momentum remains neutral. Bulls need to break above $7 to escape the range. Until then, $2 and $7 remain key zones to watch. If bullish momentum continues, the immediate resistance level sits at $3.7 internal structure lower high. If the price breaks above that, the market structure will shift and bulls will fully target the range high.
The current daily RSI reading stands at 53. This suggests neutral market conditions. The RSI is not yet in overbought territory. Therefore, bulls still have room to push the price higher for some time.
The $2 support continues to act as a strong support for recent price action. If this level breaks, Pendle could enter a new downtrend. For now, the bounce from $2 gives bulls control and buyers may target the $7 resistance as the next key level.
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