Pendle Primed for Breakout: Consolidation Phase Signals Imminent Push to $7.20

Pendle's price action coils like a spring—tight consolidation hints at explosive upside potential.

Key levels to watch

Traders eye the $7.20 resistance as the make-or-break level. A clean breakout could trigger FOMO among latecomers chasing the next altcoin rally.

Market psychology at play

The current accumulation phase smells like classic smart money positioning—while retail investors remain distracted by shiny new meme coins.

Technical setup suggests

Volume patterns and RSI divergence paint a bullish picture. Though let's be honest—in crypto, TA is just horoscopes for finance bros.

• Pendle faces repeated rejections at $7.20, a strong resistance zone.
• The current price hovers near $5.34 with weaker trading activity.
• Support at $4.70 remains critical to maintain a bullish structure.
• The decline in open interest shows cautious participation in derivatives.

Pendle is moving in a consolidation phase, reflecting the wider crypto market trend. The market focus is on whether Pendle can escape this phase with a strong breakout.

If PENDLE manages a successful push, it could unlock the path to $7.20, a key target that has capped gains in recent weeks. Over the last 24 hours, Pendle has dropped 1.98%. On the weekly chart, the token is down 2.59%, showing continued caution among traders.

At the time of writing, the token is trading at $5.33 with a daily trading volume of $101.34 million. This marks a steep fall of 60.85% compared to the prior day. Its market capitalization stands at $893.62 million, showing how much the slowdown in volume has impacted activity.

Strong Resistance Holds Back Pendle’s Momentum

According to the analyst Ali, the $7.20 level has emerged as a decisive resistance. Pendle has faced three rejections at this zone, underlining the strength of sellers whenever the price approaches this level.

Heavy profit-taking has restricted attempts to sustain gains above this barrier. The chances of a prolonged rally are still low until the bulls clear this obstacle.

Short-term price action shows rejection at $5.90, which has now flipped into minor resistance. On the downside, support at $4.70 is the key zone to watch. Holding above this level WOULD keep the broader bullish setup intact despite near-term weakness.

Possible Scenarios for Price Action

If buyers hold the $4.70–$5.00 zone, Pendle could mount another challenge to the $7.20 level. A daily close above this resistance would strengthen the bullish appetite and open upside targets at $8.50 and, potentially, $9.00. Such a breakout would likely attract more traders seeking confirmation that the uptrend is established.

Failure to maintain the $4.70 support could trigger a deeper correction. The first bearish target lies NEAR $4.10, with stronger support around $3.70. A breakdown into this region would shift sentiment and weaken the broader uptrend. For now, Pendle remains range-bound between $4.70 and $7.20.

Derivatives Indicate Cautious Positioning

Open interest for Pendle has fallen by 4.40%, reducing to $153.11 million. It signals reduced speculative action, as the percentage of traders close out positions after multiple rejections. Falling OI tends to indicate a quieter atmosphere, with reduced leverage-based volatility in the near term.

Concurrently, the OI-weighted funding rate stands at 0.0076%. Long positions are in control, but not at extreme levels. Such a balanced configuration minimizes the risk of abrupt funding-led corrections, thereby indicating that cautious Optimism persists in the marketplace.