Possible Surge Ahead for Pendle as sUSDa Cryptocurrency Gains Traction
Pendle Finance recently introduced sUSDa, a novel stablecoin pegged to Bitcoin and set to mature in April 2025. The cryptocurrency, developed by Avalon Finance, is now tradable on the Pendle platform.
This addition signifies Pendle’s commitment to expanding its product range to enhance liquidity and user participation within its ecosystem.
The news has sparked interest due to its potential to stimulate demand for Pendle’s services and its native token.
With 160 million PENDLE tokens in circulation and a market capitalization of $595.6 million, the token’s growth is intricately linked to the ecosystem’s development.
Is PENDLE Ready for a Price Breakout?
Currently, Pendle is trading at $3.59, with a strong long-term ascending trendline offering substantial technical support.
Historically, the price tends to consolidate around $3.62, a level that has often served as a launching pad for upward movements.
Analysts note a crucial horizontal support level at $3.50, which, if held, could trigger a price recovery.
Key resistance levels for Pendle are situated at $5.50 and $7.00, with the latter being a critical area for a potential breakout.
A breach above $7.00 might signal a significant price upsurge, presenting a 93% upside potential from the current valuation.
Varied Market Sentiments Emerge
On the daily chart, Pendle shows a bearish short-term trend, trading below the 13-day EMA ($3.84) and the 49-day EMA ($4.56).
This bearish stance is further supported by a downward crossover of the EMAs, indicating ongoing selling pressure.
Notably, the Relative Strength Index (RSI) hovers around 37.13, nearing oversold territories, signaling a probable consolidation phase or a reversal.
Favorable Funding Rates at 0.0068 imply long positions outpay short ones. However, a projected rate of 0.0049 suggests waning trader optimism.
If current support levels falter, a decline towards the $3.00 psychological threshold could transpire.
Market Activity Indicates a Steady Outlook
Based on IntoTheBlock data, Pendle’s Open Interest to Market Cap Ratio steadies close to its 30-day average of 40.87%.
Previously, this metric peaked at 62.03% on January 17, 2025, showcasing heightened leverage activities during that period.
Conversely, the lowest ratio of 24.55% observed on December 26, 2024, indicated reduced market participation.
With current leverage ratios reflecting a moderate stance, the market anticipates a clearer direction. An uptrend towards $7.00 could materialize in the coming weeks should Pendle uphold support levels and witness a surge in trading volumes.