- Pendle trades within a rising channel, with $4.40 acting as a crucial support for bullish continuation.
- Trading volume climbed 17.6% to $47.87M, reflecting strong market activity and renewed interest in PENDLE.
- Pendle’s $11.44B TVL signals robust fundamentals, while market cap-to-TVL ratio remains relatively low at 0.07087.
Pendle (PENDLE) is at a pivotal juncture as price action consolidates near a key support level within its ascending channel. Traders are closely watching the $4.40 zone, where defending this support could determine the token’s next directional move.
Pendle testing a key support level
The chart of Pendle (PENDLE/USDT) reflects a decisive structure as price continues to move inside an ascending parallel channel. Since mid-June, the token has respected both upper and lower boundaries of the channel, using every correction as a base for continuation.
At present, the $4.40 support is the critical zone under focus. This is the mid-zone floor of the channel as well as this is the 0.618 Fibonacci retracement of the JulyAugust rally. Traditionally, these retracement levels are places where buyers build up and the trend re-emerges at higher levels.
Ali (@ali_charts) notes that maintaining this zone would keep the broader bullish setup intact. A strong defense at $4.40 could allow Pendle to reclaim momentum toward higher resistances within the channel.
Resistance targets and upside potential
If PENDLE holds above support, traders will watch immediate resistance at $5.20 and $5.40. These levels combine horizontal barriers with Fibonacci retracement zones, making them decisive points for momentum validation.
A decisive move through these levels could push price back into the upper channel zone. In such a case, Pendle would likely retest $6.00, with a possible extension toward $7.00 if momentum accelerates and buying interest expands.
This path toward $7 depends heavily on market volume and buyers’ ability to absorb pressure near support. Sustained activity will determine if the broader trend remains constructive or reverts toward consolidation.
Market data and trading outlook
Pendle is trading at $4.79, marking a 3.3% daily gain with volume climbing 17.6% to $47.87 million. Market capitalization sits at $811.01 million, while the fully diluted valuation reaches $1.34 billion, indicating additional supply yet to unlock.
The protocol’s fundamentals remain strong, with $11.44 billion in TVL and a market cap-to-TVL ratio of 0.07087, suggesting that its valuation remains modest relative to assets secured on-chain. Circulating supply is $169.27 million PENDLE, out of $281.52 million, limiting inflationary risks.
Short-term action shows buyers stepping in around $4.65 to $4.78, signaling defense of demand zones. Sustaining momentum above these levels may create a pathway to reclaim the $5.00 zone in the near term.
