Pendle drops almost 10% after trading below key moving averages and expanding tokenized offerings

Traders Union
All News
Crypto
Pendle slides 9.78% today

Highlights

Pendle reached approximately $1.3 billion in total value locked, supporting a buyback program funded by the majority of protocol fees.
The protocol expanded institutional offerings with FLHYon, a tokenized version of Franklin Templeton FLHY ETF issued by Ondo, and a new product targeting 153% APY for traditional finance.
PENDLE/USD trades below key short- and medium-term moving averages under selling pressure, with an expected five-day range of $1.703 to $2.091 as indicators signal continued weakness.

Institutional inflows rise as buybacks and new offerings expand

Pendle was reported to have approximately $1.3 billion in total value locked on its protocol, supported by strategic buyback mechanisms allocating a majority of protocol fees to buybacks. The marketplace introduced FLHYon, a tokenized representation of the Franklin Templeton FLHY ETF issued by Ondo, reflecting increased institutional involvement. The company also highlighted insights into BTC arbitrage trading and launched a Pendle-structured product offering 153% APY targeting traditional finance, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Pendle's decline as a result of persistent negative momentum. He notes that the technical setup remains weak with prices below both the 20-day and 50-day moving averages. Kharitonov highlights that oversold signals have not triggered any meaningful buying response so far. Sentiment appears defensive despite institutional expansion and new product launches. "The risk of deeper losses remains high while bearish signals dominate across multiple timeframes," he warns.

Viktoras Karapetjanc, expert at Traders Union, believes Pendle continues to show strong fundamental growth. He points to the $1.3 billion in total value locked and the protocol’s embrace of institutional-grade products as positive indicators. The analyst sees upcoming buyback mechanisms and the launch of high-yield offerings as signs the bullish structure remains intact. While short-term pressures persist, Karapetjanc is confident in long-term upside. "Pendle’s expanding ecosystem and strategic product innovation set the stage for further growth opportunities," he asserts.

Jainam Mehta, market strategist, views Pendle as hovering near key technical inflection points. He notes that while the prevailing trend is weak, the proximity to multimonth support may offer tactical reversal setups if buyers emerge. Mehta advises monitoring for a potential breakout above resistance at $2.091 before confirming an upside shift. "A divergence in oversold momentum indicators could attract short-term traders looking for a contrarian entry," Mehta suggests.

Support holds above 200-day amid persistent oversold signals

PENDLE/USD is trading beneath both the 20-day and 50-day moving averages at $2.3205 and $2.2092, indicating ongoing short- and medium-term downside pressure, but remains above the 200-day moving average at $1.64, which affirms a longer-term bullish trend. The price is testing support near $1.703, with resistance overhead at $1.978, while the Ichimoku Kijun at $2.388 stands as a distant resistance point, consistent with a prevailing weak trend. Momentum indicators are negative, with the MACD and ADX both signaling 'Sell.' The RSI sits at 42.57 with a corresponding 'Sell' reading, the Stochastic RSI is low at 22.07, and the Commodity Channel Index (CCI) is negative at -88.40, all suggesting persistent oversold conditions. Bull/Bear Power (BBP) is only slightly positive at 0.0166, hinting at mild intraday buyer control against a backdrop of weak overall signals. The Awesome Oscillator remains neutral, showing no clear trend confirmation. Intraday volatility is measured at 1.08%, with trading near session lows and little evidence of base-building so far.

Earlier, analysts noted mixed momentum for Pendle with institutional developments and product innovation underpinning long-term interest amid conflicting technical signals. The latest data signals a notable shift toward persistent downside price action, with traders advised to monitor the $1.703 support as a potential inflection point for further losses or a possible rebound.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.