Pendle Finance [PENDLE]: Potential breakout here?

Pendle Finance [PENDLE] has announced the launch of a new Bitcoin [BTC]-backed stablecoin, sUSDa, which matures in April 2025, to its ecosystem.

Pendle Finance [PENDLE] announced the integration of a new Bitcoin [BTC]-backed stablecoin, maturing in April 2025, into its ecosystem. Named sUSDa, this stablecoin is developed by Avalon Finance and is now available for trading on the Pendle platform. This integration expands Pendle's offerings, aiming to increase liquidity and user engagement.

This announcement is significant as it could boost demand for Pendle's platform and native token. With a circulating supply of 160 million PENDLE and a market cap of $595.6 million, the token's adoption is closely tied to the growth of its ecosystem.

Pendle’s price was trading at $3.59 at press time, with a long-term ascending trendline providing strong technical support. The price was consolidating near this trendline at $3.62, an area that has historically acted as a base for upward movements. AMBCrypto’s assessment identified $3.50 as a key horizontal support level that, if maintained, could lead to a recovery.

Pendle's daily chart showed a bearish short-term trend, with the price trading below the 13-day EMA ($3.84) and the 49-day EMA ($4.56). This bearish outlook is reinforced by the EMAs crossing downward, signaling continued selling pressure.

The Relative Strength Index (RSI) was at 37.13, approaching oversold levels, which showed the potential for either a consolidation phase or a reversal. Funding Rates remained positive at 0.0068, indicating that long positions were paying shorts. However, the predicted Funding Rate at 0.0049 suggested reduced optimism among traders.

If the price failed to hold at current support, a drop toward the $3.00 psychological level is possible.

Pendle's Open Interest to Market Cap Ratio has stabilized near its 30-day average of 40.87%, according to IntoTheBlock data. This metric previously peaked at 62.03% on the 17th of January 2025, signaling high leverage activity during that period. The lowest level of 24.55%, seen on the 26th of December 2024, reflected reduced market engagement.

With current ratios showing moderate leverage, the market awaits a clearer trend. If Pendle maintains support levels and trading volume increases, a breakout to $7.00 may become more likely in the coming weeks.