Key takeaways
- PENDLE is down 1% in the last 24 hours as the broader crypto market undergoes a correction.
- The coin could rally towards $4.5 soon after sweeping liquidity to the downside.
PENDLE defends its price above $3
The cryptocurrency market has been bearish since the start of the week, with most coins and tokens currently in the red. Memecoins have recorded bigger losses as they are more volatile compared to other narratives in the crypto ecosystem.
PENDLE, the native coin of the Pendle ecosystem, has lost 10% of its value over the last seven days but could bounce back soon. At press time, the coin is trading at $3.870 after defending its price above $3.5.
The primary catalyst behind a possible rally would be Pendle launching Boros on Arbitrum, allowing users to trade funding rates of Bitcoin and ether perpetual markets. Boros enables traders to go long or short on funding rate exposure using “Yield Units” (YUs), which are structurally similar to Pendle’s existing Yield Tokens.
This integration could boost PENDLE’s adoption, resulting in a price surge in the near to medium term.
PENDLE eyes $4.5 after sweeping downside liquidity
The PENDLE/USD 4-hour chart is bullish and efficient after PENDLE swept liquidity to the downside over the weekend. The efficiency could allow PENDLE to rally higher in the near term.
The technical indicators are also bullish, suggesting that buyers are currently in control. At press time, PENDLE is trading at $3.870. After sweeping liquidity to the downside and creating a TLQ at $3.6, PENDLE could surge higher and hit the first major resistance level at $4.5 over the next few hours or days. An extended bullish run would allow the coin to retest its recent high of $5.013.
The RSI of 46 shows that the selling pressure is fading. However, RSI needs to stay above 50 for PENDLE to embark on a sustainable rally.
On the flipside, PENDLE could retest the $3.6 weekend low if bullish momentum fails to hold. Failure to defend the weekend low would allow PENDL to retest the $3.090 support level for the first time since June.
