This article was first published on The Bit Journal.
Pendle price currently hangs in the balance after falling more than 10% during the latest trading session, despite an increase in trading activity and buyer participation across the market.
At the time of the price drop, Pendle saw around $36.9 million in daily trading volume, a 20% increase on the previous day, which would normally be a sign that a price recovery is imminent. However the extra buying power failed to lift the price because sellers kept on absorbing the demand that was coming in.
The market is very active but also split in terms of direction, with traders now focused on whether the support around $1.16-$1.20 is going to hold out long enough to kick off a recovery back up towards the important $1.40-$1.50 zone.
Buyers Are Still Stepping In, Even As Prices Keep Dropping
Even though the Pendle price has declined, the aggressive buyers haven’t gone away.
Looking at the spot market data, the Spot Taker Cumulative Volume Delta (CVD) is still in the green region and still trending upwards even as the token dropped in value. This means that buyers are still coming in and trying to soak up as much of the available supply as they can.
But so far, it has not had much of an effect. Sellers keep on meeting that demand, and stopping the buyers from getting the momentum going. This pattern is often seen when bigger holders or short-term traders are using rallies to exit their positions.
According to recent data, liquidity is flowing selectively instead of broadly into DeFi tokens. While some sectors are benefiting from the improving altcoin sentiment, yield-focused protocols like Pendle are seeing more mixed flows. Analysis published earlier in the week made the point that DeFi infrastructure tokens, including Pendle, have cooled off after attracting a lot of attention earlier in the year.
This is why there isn’t any sustained price movement yet.
Why the $1.16 Level Matters for the PENDLE Price
Technically, the market is focused on the $1.16 level as support. This is where buyers have been defending time and again, even with all the selling pressure that has been happening. Every attempt to push below it has attracted renewed interest from traders looking for a rebound.
However, the recovery attempts have been getting weaker over time and the chart is showing a lower-high structure, which can be a bearish sign. Meanwhile, the MACD indicator is also looking bearish, with the MACD line below the signal line and the histogram still negative.
All of these suggests that sellers are still in charge.
Technical analysis that came out earlier this month pointed out that the $1.15-$1.18 region is one of the most critical support levels for Pendle’s market structure. If the price can hold that zone, there might be a chance at a recovery while a breakdown would expose lower levels.
For now, bulls are still fighting to defend the area, but it is getting tougher by the day.
The $1.40-$1.50 Zone Is Becoming a Magnet
Above current prices there is a lot of interest in the $1.40 to $1.50 zone.
Looking at the liquidation heatmap data, there’s a real concentration of leveraged positions in that area, which is starting to catch investors’ eyes.
These liquidity clusters are a big deal because the crypto markets often end up heading in the direction of where all the leveraged positions are. Those areas tend to be packed with stop-loss orders and liquidation levels that can really amplify the price movement when they are reached.
It is also important to note that liquidity below current prices appears much thinner.
If the PENDLE price manages to bounce back off the support level, a lot of traders are expecting the market to head over to this zone before it decides which way to go next.
Recent market analysis has also highlighted $1.50 as one of the main resistance areas for Pendle. During last week’s altcoin rally, analysts noted that a sustained move above nearby resistance levels could open the door to another test of the $1.50 region.
Broader Market Conditions Still Matter A Lot
The issue for Pendle is that its recovery does not depend solely on its own buyers.
Bitcoin is still dictating appetite for risk across all the crypto markets and investors are being picky about which altcoins get any new funding. At the same time, the DeFi sector for Pendle has been moving at a slower pace compared to the previous growth in restaking and yield driven rallies.
So, traders are watching both the technical levels and the overall market sentiment.
If Bitcoin can get some stability, then it is possible that the buyers will get the confidence they need to hold the support and go after the higher liquidity zones. On the other hand, if the rest of the altcoins are struggling, then keeping hold of this current support area is going to be harder.
Conclusion
PENDLE price dropped off by over 10%, but somehow the market is still showing that buyers aren’t completely out of the picture.
There are still some aggressive buyers, trading volume is up and there is still support coming in near $1.16. However, sellers are still absorbing that interest, while bearish momentum indicators remain intact.
Right now, the battle is about holding support. If the bulls can keep defending the area, then the $1.40-$1.50 liquidity zone is a realistic short term target. If the support fails, a deeper drop could be looming quickly.
Glossary
PENDLE: The native token of the Pendle protocol.
Spot Taker CVD: A metric that shows how active the buyers and sellers are in spot markets
MACD: A standard momentum and trend indicator.
Support Level: A price area where buying demand emerges.
Liquidation Heatmap: A visual tool that shows where all leveraged positions might get liquidated.
Frequently Asked Questions About Pendle Price
Why did the PENDLE price fall even with the higher volume?
Because the volume reflected both buyers and sellers being active. Sellers ultimately absorbed demand and maintained downward pressure.
Why is $1.16 important?
Because that level has been acting as a major support zone where all the buyers step in to stop the decline
What is the significance of the $1.40-$1.50 range?
Because that is where there are leveraged positions and liquidity levels, making it a big deal if momentum improves
Is PENDLE still in a bullish trend?
Current indicators remain mixed. Buyers are active, but bearish momentum signals and lower highs suggest caution.
References
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