Can Pendle avoid deeper losses as oversold conditions limit further selling?

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Pendle drops 8.05% today to $1.46

Highlights

Pendle faces sustained bearish momentum, trading below key moving averages across all observed timeframes.
Short-term momentum indicators unanimously signal strong selling pressure, with multiple oscillators registering deeply oversold conditions.
Next 2–3 days are expected to see Pendle move sideways between $1.4174 and $1.5086, with heightened risk for further downside.

Oversold momentum deepens as technical resistance holds

On the h1 chart, PENDLE trades below the MA-20 at $1.5017 and MA-50 at $1.5491, while on the daily timeframe, it stays under the MA-200 at $1.4725. The Ichimoku Kijun acts as immediate resistance at $1.53. MACD and ADX both indicate prevailing sell conditions, and the majority of oscillators add weight to this, with RSI, Stoch RSI, and CCI all deep in oversold territory. Bull/Bear Power also continues to signal seller dominance. The Awesome Oscillator is now neutral, not providing conviction for further moves. Price action has moved sharply lower to $1.463, creating a gap and trading near today's low with moderate volatility. These conditions point to strong intraday bearish momentum, but the oversold readings suggest some caution for new short positions.

Further declines seen likely as volatility and support define range

In the short term, Pendle is expected to stay within the $1.4174 to $1.5086 range over the next two to three sessions. Current volatility and indicator alignment signal a very high probability of further downside, with only a minimal chance of a meaningful rebound. The base scenario is sideways movement inside this corridor. A bullish shift would require a break above the Ichimoku Kijun, while a drop below the lower end of the range would trigger another leg down.

Viktoras Karapetjanc, expert at Traders Union, sees Pendle continuing to struggle as it remains under key moving averages and strong bearish momentum prevails. He notes that indicator alignment and sharp price action suggest that sellers are in control, but oversold conditions warrant some caution before new short entries. The analyst believes that a decisive move outside the $1.4174 to $1.5086 range will set the next direction. "Bulls need a clear reclaim above $1.53 to flip the tone—until then, further downside remains the probable path," says Karapetjanc.

Earlier, analysts noted that Pendle was exhibiting strong bullish momentum supported by positive technical signals and increased protocol activity. The recent shift to pronounced bearish conditions marks a clear change in market structure, positioning the $1.4174 level as a critical downside risk to monitor for confirmation of further weakness.

Source of Data: PENDLE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.