Pendle’s native token, PENDLE, is making waves in the crypto market, climbing nearly 20% in the past 24 hours to trade around $5.28.
While PENDLE is still 29.88% shy of its all-time high, the surge has propelled daily trading volume to $401 million, underscoring strong market momentum.
Pendle partnership with Ethena opens a new yield path
The rally comes on the heels of Pendle’s strategic partnership with Ethena, integrating the fast-growing USDe stablecoin into its yield-generating ecosystem. The collaboration introduces a looping strategy that combines Pendle’s Principal Tokens (PTs) with Aave’s lending platform, offering traders a new way to amplify returns.
USDe, which is now live on HyperEVM, launched with a $100 million capped liquidity pool that quickly attracted strong demand. Under the new strategy, users can purchase PTs with USDe for fixed yields, borrow USDC against PTs on Aave, then reinvest that USDC into buying more USDe, repeating the cycle.
Current PT yields average 8.8%, notably higher than Aave’s 4%–6% borrowing rates, making the setup profitable even after accounting for Aave’s 10% loan fees and Pendle’s 5% PT fees.
As of now, USDe holds $4.01 billion in assets, representing 60% of Pendle’s total value locked (TVL), with most funds tied to Staked USDe and eUSDe.
Aave’s DAO pegs USDe to USDT to minimize liquidation risks, but the strategy’s viability hinges on PT yields staying above borrowing costs and Aave increasing collateral limits.
PENDLE breaks key resistance, eyes on $5.50 target
From a technical analysis perspective, PENDLE is trading around $5.3030, extending its breakout above the upper Bollinger Band resistance at $5.1445. The move follows a strong rebound from the middle band at $4.3617, pushing the token into a near two-month high zone.
If bullish momentum holds, the next upside target could be above $5.50, though overbought conditions may spark short-term profit-taking.
The Relative Strength Index (RSI) stands at 68.90, approaching the overbought threshold of 70, while the MACD remains firmly bullish, with the MACD line at 0.06882 above the signal line at 0.06785. Trading volume of 8.11 million USDT confirms strong participation, further validating the breakout.
Overall, PENDLE’s short-term outlook remains bullish, but traders should monitor for consolidation if momentum cools. A sustained hold above $5.14 would keep the rally intact, while a drop below that level could open the door for a retest of $4.36 support.