Highlights:
- Pendle is currently trending towards multi-week support
- A series of good news coming off the Pendle ecosystem could trigger a rebound
- Bitcoin is holding back Pendle despite the good news
Pendle (PENDLE), like many other cryptocurrencies, is experiencing a significant downturn today. In the past 24 hours, it has dropped by 15.81%, bringing its current price to $4.08. This decline continues the bearish sentiment that has dominated its trading since June 24. However, the broader picture reveals that the cryptocurrency is in a multi-week consolidation phase, fluctuating between a resistance level of $6.084 and a support level of $3.867.
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Consolidation and Potential Bounce
Currently, the coin is trending towards its support level of $3.867. If this consolidation pattern continues, there is a strong possibility of a bounce. Should Pendle bounce off this support, it could rally back to the $6.084 resistance in the short term. If the bulls can sustain momentum and break through this resistance, prices as high as $6.983 could be achieved soon.
Conversely, if the bears breach the $3.867 support, it could drop to as low as $2.40. However, the likelihood of a bounce-off support is higher, given the recent positive news surrounding the coin.
Positive Developments: Ethena and Symbiotic Collaboration
In the past 24 hours, Pendle has announced significant developments involving Ethena and Symbiotic, which have been highlighted in a series of tweets. These tweets detail a new collaboration between Pendle, Ethena Labs, Mellow Protocol, and Symbiotic Finance, emphasizing the launch of rsENA and rsUSDe assets on September 26.
Summary
1️⃣ rsUSDe is fully capped on both Mellow and Symbiotic at time of writing. Thus zapping into the pool via external assets is not possible until the caps are lifted. However, existing rsUSDe holders can enter into the pool with their current holdings.
2️⃣ ENA cap on… pic.twitter.com/7WFygCNqbP
— Pendle (@pendle_fi) July 2, 2024
According to Pendle, the rsUSDe asset is entirely capped on Mellow and Symbiotic platforms. New entries into the pool via external assets are only possible once the caps are lifted. However, existing rsUSDe holders can still participate in the pool with their current holdings. Meanwhile, the ENA cap on Symbiotic has not been reached, allowing any deposits in rsENA to earn 1x Symbiotic Points and 2x Mellow Points.
What are rsENA and rsUSDe?
rsENA and rsUSDe are the first non-ETH assets to be restaked on Symbiotic, curated by @Re7Capital, @MEVCapital & @k3_labs.
Both assets are used to secure cross chain messaging of USDe, and later multiple layers of the Ethena ecosystem via Symbiotic.
— Pendle (@pendle_fi) July 2, 2024
Impact on Pendle’s Growth
This collaboration is seen as a positive development for Pendle, as it aligns with Pendle’s mission to enable the tokenization and trading of future yield. Pendle’s novel Automated Market Maker (AMM) supports assets with time decay, giving users greater control over future yield and creating opportunities for utilization. The Ethena Symbiotic deal will boost Pendle’s growth and market presence.
Broader Market Trends
However, it is crucial to consider the broader cryptocurrency market trends when evaluating Pendle’s future performance. Since yesterday, Bitcoin has been trending lower and dropped below the $61,000 mark. This downward trend suggests that Bitcoin could soon test prices below $60,000.
If Bitcoin continues to decline, it could negatively impact the entire cryptocurrency market, including Pendle. In such a scenario, despite Pendle’s positive news, the broader market sentiment could drive its price below the $3.867 support level, potentially dropping to the $2.403 multi-week support.
Is Pendle Headed Higher or Lower?
Overall, while the coin is currently facing a significant price drop, the positive developments from its recent collaboration with Ethena and Symbiotic offer a potential for recovery. It could see a substantial rally if the broader market conditions stabilize and Pendle bounces off its support level. However, investors should remain cautious and closely monitor Bitcoin’s performance, as it will likely influence Pendle’s short-term trajectory.
Its current market situation reflects the broader cryptocurrency market trends. While the recent positive news provides hope, the overall market sentiment will play a crucial role in determining its future price movements. Investors should stay informed and be prepared for potential volatility in the coming days.
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