At the start of the year, Pendle [PENDLE] witnessed substantial progress, reaching its peak in April with a remarkable 600% surge. Subsequently, there was a pullback in the following months, retracing to the 75% Fibonacci level before showing signs of recovery in August.
Currently, Pendle is valued at $5.3, showcasing a notable 355% year-to-date increase.
The growth of Pendle is remarkable, as it transforms the landscape of yield optimization by tokenizing future yields to maximize profits.
If Pendle manages to close above $6.3 by the end of the month, there is a possibility of challenging its previous peak of $7.52 by December.
Pendle’s Total Value Locked (TVL) on the Rise
Since February, the coin’s TVL has been on a consistent upward trajectory, surpassing $6 billion in June, indicating robust growth and a growing user base.
However, a sharp decline was witnessed in July, bringing the TVL down to nearly $3 billion, possibly due to market corrections or outflows of liquidity.
From August onward, the TVL demonstrated resilience, stabilizing around $3 billion before gradually recovering in October and November.
Currently, Pendle’s TVL sits at $3.392 billion, showcasing renewed confidence in the market and increased engagement within its ecosystem.
Positive Price Momentum Sparks Hope for Investors
On the four-hour chart, PENDLE’s price action is consolidating above a robust support level at $5.00. A potential breakout could lead to a target price of $7.00, representing a significant 39.73% upside if the bullish trend persists.
The price movement appears range-bound, with the Alligator lines converging, signaling a lack of clear direction in the near term.
While the MACD indicates a slight bearish trend with lines below the signal line, showing weak momentum, the histogram displays decreasing bearish pressure, hinting at a possible reversal. Additionally, the stochastic RSI hovers near the oversold zone at 33.87, potentially indicating an upcoming price rebound.
Pendle Bounces Back Post a Shift in Funding Rates
Observing the chart, the relationship between Pendle’s price (yellow line) and the Open Interest-Weighted Funding Rate (green area) is depicted over time.
In early November, a negative Funding Rate coincided with a minor price dip, suggesting short-term bearish sentiment. However, as the Funding Rate stabilized and turned positive, Pendle regained momentum, reflecting a resurgence in market confidence.