"Can Pendle Break $7.20 to Reclaim Bullish Momentum?"

Pendle (PENDLE), a permissionless yield-trading protocol, has recently shown signs of consolidation amid a broader crypto market slowdown. The token has traded near $5.33, with the $7.20 level emerging as a critical resistance zone that has repelled price advances multiple times. Analysts highlight that breaking above this threshold would signal a potential resumption of bullish momentum, unlocking targets at $8.50 and beyond. Conversely, a failure to hold key support levels could result in a deeper correction.

Recent data from CoinMarketCap indicates that Pendle’s price has declined by 1.98% over the last 24 hours and 2.59% on the weekly chart. The token’s market capitalization currently stands at $893.62 million, with daily trading volume reaching $101.34 million, a sharp 60.85% drop compared to the previous day. This reduction in volume and activity suggests that speculative interest in Pendle is waning.

Derivative activity also reflects caution in the market. Open interest in Pendle has fallen by 4.40%, now totaling $153.11 million. A shrinking open interest typically indicates traders closing positions, often following repeated price rejections at key levels. The decline points to a quieter market environment with fewer leveraged bets and lower volatility in the short term. The OI-weighted funding rate remains at 0.0076%, suggesting that long positions are in control but not at extreme levels, which minimizes the risk of abrupt corrections.

Price action has shown that the $5.90 level has transitioned into a minor resistance zone after a recent rejection, while the $4.70 level remains crucial for the broader bullish structure. Analyst Ali emphasizes that maintaining support above $4.70 is essential for preserving the uptrend. If the price breaks below this level, the next bearish target lies near $4.10, followed by stronger support around $3.70. A breakdown into this range would likely signal a shift in market sentiment and could weaken the broader bullish narrative.

Looking ahead, several technical indicators remain under close scrutiny. A daily close above $7.20 would not only validate the bullish setup but also attract traders seeking confirmation of a resuming uptrend. If the market confirms this breakout, it could open the door to higher targets such as $9.00. However, the path to these levels remains uncertain without a definitive breakout or sustained volume increase.

Pendle’s recent performance is also being shaped by broader macroeconomic and technical factors. The v3/Boros upgrade, which introduces funding rates trading and multi-chain expansion, is seen as a potential catalyst for the protocol. This upgrade could drive new liquidity and fees to vePENDLE holders, aligning incentives across liquidity providers and users. The expansion to blockchains like Solana is expected to diversify Pendle’s ecosystem and capture additional market share.

Despite these potential tailwinds, risks remain. The decline in speculative activity around airdrops and yield opportunities has already impacted some yield-generating tokens, and Pendle is not immune. Additionally, USDe, which accounts for approximately 58% of Pendle’s total value locked (TVL), is a concentrated risk. Any drop in USDe yields could directly impact Pendle’s TVL and, by extension, its price performance.

In the broader context, Pendle’s price performance remains highly dependent on both internal developments and external market conditions. While the token has shown relative strength since early February, it is still down nearly 30% year-to-date. As the crypto market continues to consolidate, investors are advised to closely monitor key price levels and developments around the v3 upgrade.