Pendle (PENDLE) Token Draws Attention Despite Recent Dip

Pendle (PENDLE), the digital token tied to Pendle's real-world asset tokenization platform, is drawing significant attention despite a recent short-term dip.

Pendle (PENDLE) has come a long way from the lows of early 2023, and the digital token is now showing signs of a potential breakout, which could propel it toward the $5.00 handle, an analyst at Ali Martinez has revealed.

Despite a recent short-term dip of 6.13% to trade at $3.31 by 09:38 ET on Wednesday, Pendle’s price has held up remarkably well, especially considering the recent volatility in the crypto market. The token is still up 6.11% over the past month.

Pendle faces crucial resistance at $3.50

According to Martinez, a key resistance level sits near the $3.50 mark, which is the midpoint of a well-established trading channel and has served as a turning point in prior price cycles. A firm break above this point could trigger a rally toward the $5.00 target.

As the accompanying chart shows, there’s also a strong support level for PENDLE around $1.80, where the price tends to hold steady or bounce back.

“The recent rebound from the $1.85 level and subsequent rise to $3.5 could be seen as a pivotal moment for Pendle. The token’s price has remained range-bound, fluctuating between $2.90 and $3.50, setting up a crucial inflection point. Traders are now watching to see if a breakout above this band will confirm the beginning of a larger upward trend, or if the asset will slide back to test lower supports,” Martinez explained.

Pendle’s price has remained range-bound, setting up a crucial inflection point.

Pendle is also trading above its 50-day simple moving average of $3.03, which could be a factor in the ongoing accumulation activity.

The Relative Strength Index (RSI) is closely hovering around 51, which does not point to either overbought or oversold conditions, signaling that the market is undecided and waiting for a clearer push in one direction.

However, other momentum indicators are sparking some caution. The MACD (Moving Average Convergence Divergence) line crossed below the signal line, which could mean that upward momentum is weakening, or that a correction might be ahead.

Additionally, open interest in Pendle derivatives has retreated 7.61% to $57.06 million, suggesting that traders are trimming their exposure. A slightly negative funding rate of -0.0032% signals that short sellers are paying funding to long traders, reflecting cautious market sentiment leaning bearish.

Liquidations over the past 24 hours hit $172.94K, with a staggering $172.62K of that coming from long positions. Only $310.53 was wiped out from shorts, showing how bulls were blindsided by the recent drop, which underscores the cautious mood in the market.

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The post Pendle faces crucial resistance as crucial apex approaches appeared first on Chain Link.

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