- Pendle integrates sUSDa by Avalon Finance, enhancing its ecosystem and driving potential token demand.
- Technical support at $3.50 and $3.62 may pave the way for a 93% breakout to $7 resistance.
Pendle Finance [PENDLE] has announced the launch of a new Bitcoin [BTC]-backed stablecoin, sUSDa, which matures in April 2025, to its ecosystem.
This stablecoin, developed by Avalon Finance, is now available for trading on the Pendle platform.
The integration represents an expansion of Pendle’s offerings, aimed at increasing liquidity and user engagement.
This announcement has drawn attention as it could potentially boost demand for Pendle’s platform and native token.
With a circulating supply of 160 million PENDLE and a market cap of $595.6 million, the token’s adoption is closely tied to the growth of its ecosystem.
PENDLE: Potential breakout here?
Pendle’s price was trading at $3.59 at press time, with a long-term ascending trendline providing strong technical support, at the time of writing.
The price was consolidating near this trendline at $3.62, an area that has historically acted as a base for upward movements.
AMBCrypto’s assessment identified $3.50 as a key horizontal support level that, if maintained, could lead to a recovery.
Source: TradingView
Resistance levels for Pendle were noted at $5.50 and $7.00, with the latter being a critical zone for a potential breakout.
Breaking above $7.00 could pave the way for a substantial price increase, representing a 93% upside from the current level.
Market sentiment shows mixed signals
Pendle’s daily chart reflected a bearish short-term trend, with the price trading below the 13-day EMA ($3.84) and the 49-day EMA ($4.56).
This bearish outlook is reinforced by the EMAs crossing downward, signaling continued selling pressure.
Source: TradingView
The Relative Strength Index (RSI) was at 37.13, approaching oversold levels, which showed the potential for either a consolidation phase or a reversal.
Funding Rates remained positive at 0.0068, indicating that long positions were paying shorts. However, the predicted Funding Rate at 0.0049 suggested reduced optimism among traders.
If the price failed to hold at current support, a drop toward the $3.00 psychological level is possible.
Source: Coinalyze
THIS reflects moderate activity
According to IntoTheBlock data, Pendle’s Open Interest to Market Cap Ratio has stabilized near its 30-day average of 40.87%.
This metric previously peaked at 62.03% on the 17th of January 2025, signaling high leverage activity during that period.
Read Pendle’s [PENDLE] Price Prediction 2025–2026
The lowest level of 24.55%, seen on the 26th of December 2024, reflected reduced market engagement.
Source: IntoTheBlock
With current ratios showing moderate leverage, the market awaits a clearer trend. If Pendle maintains support levels and trading volume increases, a breakout to $7.00 may become more likely in the coming weeks.
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