PENDLE +15.55% in 24 Hours Amid Volatile Short-Term Price Swing

On SEP 1 2025, PENDLE surged by 15.55% within 24 hours to trade at $5.134, marking a sharp reversal against a broader bearish trend. However, this recent uptick stands in contrast to its longer-term performance, with the token having fallen 795.92% over the past 7 days, 223.28% in a month, and 729.7% year-to-date.

The short-term spike appears to be driven by renewed interest in its protocol’s yield-optimization mechanics, which continue to attract DeFi participants seeking alternative ways to manage tokenized yield assets. While the 24-hour gain is a rare positive note, it fails to offset the steep losses seen in recent weeks. Analysts project that the token remains in a bearish trend unless it can break above key psychological and technical levels to confirm a reversal pattern.

PENDLE’s price action has shown increasing volatility across all time frames. The recent 15.55% gain is the largest positive swing in over a month and is seen by some as a short-term bounce rather than the start of a sustained recovery. On the technical front, the price remains below its 50-day and 200-day moving averages, reinforcing the bearish bias. The RSI has moved into overbought territory following the recent rally, suggesting that near-term profit-taking could pressure the token back toward its recent support levels.

The 7-day and monthly price declines continue to highlight structural weaknesses in PENDLE’s fundamentals. Despite its unique tokenomics and protocol design, liquidity and on-chain activity have remained subdued in recent weeks. Market participants are watching closely for signals that on-chain demand may be stabilizing, but as of now, the trend remains unresolved.

Backtest Hypothesis

A proposed backtest strategy for PENDLE involves leveraging a combination of the 50-day and 200-day moving averages alongside RSI divergences to identify potential trend reversals. The hypothesis is that a cross-above the 50-day MA with a concurrent RSI bottoming action could signal a short-term entry opportunity. This method would be tested over the past year to evaluate its performance in identifying profitable trades amid PENDLE’s high volatility. A stop-loss would be placed below the 200-day MA to manage risk exposure, while a take-profit target would be set at the next resistance level.