Pendle Faces 44% Drop Risk as Key Support at $3.60 Looms

Pendle (PENDLE) is currently trading at $3.83, showing signs of weakness as it approaches the critical support level of $3.60. The asset has failed to sustain its recent high of $4.12 and is now trading in a tightening range. Market analysts have identified $3.60 as a crucial support zone that has held since April. If this level gives way, technical indicators suggest a rapid decline toward $2.00 could follow.

The $3.60 level on the 3-day chart has been a defining line between bullish continuation and bearish breakdown. This zone has previously acted as a springboard for rallies toward the $4.80–$5.00 region. Losing it now would indicate a failure to maintain upward momentum. PENDLE has revisited this zone multiple times over the last quarter, with each bounce showing weakening follow-through, suggesting that buying pressure may be fading. The latest pullback follows a failed attempt to reclaim $4.10, which marked a local top last week.

Currently, PENDLE is just above $3.80, giving it a narrow margin to hold before a breakdown is confirmed. Market sentiment may shift quickly if a daily or 3-day candle closes below $3.60 with strong volume. Traders are closely watching this area for confirmation of a breakdown.

A daily close under $3.60 would invalidate recent higher lows and create space for a larger corrective move. Based on the chart structure, the next major support lies near the $2.00 level. This target has historical confluence from previous accumulation phases. The drop from $3.60 to $2.00 would mark a 44% decline, which matches previous downward moves within Pendle’s broader volatility range. Traders often respond quickly to such technical failures, especially if volume rises alongside breakdown confirmation.

Historical data shows that once $3.60 fails, the next support zone offers little friction. The absence of strong demand zones between $3.40 and $2.00 makes this area vulnerable to swift moves. Short-term traders may use this setup to manage risk or identify short entries.

As of now, PENDLE is holding slightly above $3.80, but the price structure continues to deteriorate. Candle wicks suggest that buyer attempts are being sold into near each resistance. The momentum appears to favor sellers as the chart shifts closer to critical support. Multiple rejections at the mid-$4.00 zone over the past few weeks confirm heavy overhead supply. If buyers fail to create higher highs, confidence in a sustained uptrend may weaken further. This adds weight to the bearish scenario unfolding if $3.60 fails to hold.

Until price flips back above $4.10 with strength, PENDLE may remain range-bound or face increased downside risk. With historical volatility increasing near these levels, the next few candles could prove pivotal for short-term direction. The current formation raises a vital question for traders: Can Pendle defend the $3.60 floor, or is a drop to $2.00 inevitable?