Key points
- PENDLE fell 1% over the past 24 hours as the broader crypto market experiences a correction.
- The coin could rise to $4.50 soon after liquidity declined.
PENDLE holds price above $3
The cryptocurrency market has been bearish since the start of the week, with most coins and tokens trading lower. Meme coins have suffered larger losses, given their higher volatility compared with other narratives in the crypto ecosystem.
PENDLE, the native token of the Pendle ecosystem, has lost about 10% of its value over the past seven days but shows signs it could recover. At the time of writing, the token traded around $3.87 after defending its price above $3.50.
A primary catalyst for a potential rally is the launch of Pendle Boros on Arbitrum, which will allow users to trade funding-rate exposure on perpetual Bitcoin and Ether markets. Boros enables traders to open long or short exposure to funding rates using “yield units” (YU), which are structurally similar to existing Pendle yield tokens.
This integration could increase PENDLE adoption and drive price appreciation in the short to medium term.
PENDLE targets $4.50 after sharp liquidity drop
The 4-hour PENDLE/USD chart looks bullish and efficient after a recent liquidity drop over the weekend. That setup could allow PENDLE to move higher in the near term.
Technical indicators are also bullish, indicating buyers currently control the market. At the time of writing, PENDLE trades at $3.87. After losing liquidity and forming a TLQ near $3.60, PENDLE could push higher to test the first significant resistance around $4.50 over the next few hours or days. A sustained bullish run would give the token a chance to re-test its recent high of $5.013.
The RSI sits near 46, suggesting selling pressure is easing. However, RSI needs to remain above 50 for PENDLE to sustain a stronger rally.
Conversely, if bullish momentum fades, PENDLE could retest the swing low from the weekend at $3.60. Failure to defend that level would expose the token to a deeper test of support around $3.09, a level not seen since June.