Pendle Price Prediction: $3 Support at Risk As Network TVL Drops 47%

Pendle Price Prediction: On Wednesday, the cryptocurrency market witnessed renewed supply pressure after a week-long consolidation. This minor relief in most of the major altcoins including Pendle resumed bearish momentum as Bitcoin price recorded a 4% fall today to plunge below the $60000 support. The Pendle price is now heading to a combined support of $3.82 and a 23.6% Fibonacci retracement level, projecting a pivotal movement for further downfall or reversal.

Also Read: DeFi Protocol Pendle’s TVL Drops 40% In A Week, What’s Behind the Exodus?

Pendle Price Prediction: Critical Support Levels Amid Market Decline

Pendle is a DeFi protocol that specializes in the trading of future yields of crypto assets, allowing users to manage and speculate on future yield changes effectively. With the broader market sideways for the past few months, the Pendle price struggled to surpass the $7.3 level evidenced by the two reversals in the daily chart.

The second peak lower than the prior accentuates the lack of sufficient momentum from buyers to lead a high rally. This bearish turnaround has tumbled the asset 45% with six weeks to trade at $3.95, while the market cap plunged to $619.8 Million.

During the recent downturn, the Total Value Locked (TVL) on the Pendle Network has seen a substantial reduction. From its peak of $6.72 billion on June 7th, it has fallen to approximately $3.54 billion, marking a 47.3% decrease. 

This significant drop in TVL suggests a reduction in the capital staked or invested in the network, potentially indicating waning investor confidence or a reallocation of funds to other opportunities amid shifting market conditions.

Also Read: Ethereum, Bitcoin & XRP Lead $1.5B Crypto Scam Losses, What’s Happening?

With an intraday loss of 2.76%, the Pendle price tests the combined support of $3.82 and 23.6% FIB. In theory, this level is marked as crucial support for buyers to launch a counterattack.

Thus, a potential reversal could see the Pendline price entering a sideways trend and eventually challenging the $7.3 resistance zone.

On a contrary note, a breakdown below the $3.82 floor with daily candle closing will intensify the supply pressure and may push Pendle’s price to $3.2.

Technical Indicator:

• EMAs: A potential reversal from $3.82 support will allow the buyers to regain the 200D Exponential Moving Average and restore the bullish sentiment among traders.
• RSI:  The daily Relative Strength Index slope on the verge of entering the oversold region( below 30) could attract a dip in the market.