Pendle technical analysis: Downward price move with oversold signals and $1.791 support in focus

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Pendle drops 10.61% to $1.94 today

Highlights

Pendle Finance offers a 153% APY on its TradFi ETF to attract traditional finance investors with highly competitive yields.
Pendle manages about $1.3 billion in total value locked and allocates 80% of protocol fees to buybacks, supporting ongoing liquidity management.
PENDLE/USD trades below key moving averages with strong bearish momentum, expected to remain in the $1.791 to $2.007 range through the next 2 to 3 days.

Inflow incentives and buyback strategy as Pendle targets new investors

Pendle Finance has introduced a 153% APY for its TradFi ETF, aiming to attract traditional finance investors through highly competitive yields, according to Coinfomania. This direct incentive is positioned to stimulate new demand inflows, though its sustainability may raise questions as the market responds to the announcement. In addition, Cryptonews reported Pendle's significant presence in the real-world asset sector, highlighted by approximately $1.3 billion in total value locked and a buyback strategy channeling 80% of protocol fees, underscoring the protocol's continued liquidity management efforts.

Bearish signals strengthen as selling pressure breaches key averages

On the technical front, PENDLE/USD is trading below both the MA-20 and MA-50 on the H1 chart, with price action still above the MA-200. The Ichimoku Kijun level at $2.0605 represents immediate resistance. Momentum indicators confirm selling pressure: MACD and ADX are on "Sell" signals, while RSI stands at 31, with CCI also indicating oversold levels and Stoch RSI reading as neutral. Bull/Bear Power points to intraday seller control, and the asset's sharp intraday drop aligns with this strong downside momentum.

Downside risk persists as price constrained below resistance

Over the next 2–3 trading days, PENDLE/USD is likely to range between $1.791 and $2.007, within a typical volatility band for the present market context. There is a high probability of further downward movement, with only minimal likelihood of a sustained recovery unless price can decisively clear the $2.0605 resistance. If price consolidates, it should remain capped within this range, while a close below $1.791 would suggest the risk of further declines.

Anton Kharitonov, Traders Union expert, sees Pendle’s sharp drop as a sign of dominant selling pressure despite positive news on protocol growth. He remains cautious, noting that the highly attractive 153% APY may not be sustainable and has not reversed the bearish price momentum. Technical signals point to continued downside, with recovery unlikely unless $2.0605 is reclaimed. "Until price overcomes key resistance and selling momentum fades, I treat rebounds as temporary and favor a defensive stance on PENDLE."

Earlier, analysts noted that Pendle was experiencing persistent downside momentum despite ongoing protocol developments and long-term structural strength. The latest trading action reinforces those concerns, with intensified selling pressure and a key technical level at $2.0605 now serving as a critical threshold for any potential reversal or further decline.

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.