Pendle (PENDLE) has finally found its way back into the list of gainers as the broader market recovers. The recent interest rate cut by the Federal Reserve has boosted investor sentiment, leading to a new wave of recovery in the crypto market. Bitcoin and several altcoins have been experiencing a bullish trend, and now Pendle has joined them.
At the time of writing, the Pendle price was around $4.26, showing an impressive 16.4% growth intraday and over 27% in a week. This rise marks the end of a three-month correction phase and puts Pendle back on track for growth. The increase in price can be attributed to derivative traders, as indicated by the surge in open interest from $32.5 million to $54 million in just a week.
Other on-chain metrics, such as the price DAA divergence (Daily Active Address), also suggest a notable shift in price and activity. Looking at the overall charts, positive metrics and a bullish divergence between price and daily active address indicate a trend continuation.
From a price action perspective, Pendle has surpassed the 200-day exponential moving average, signaling a shift in the long-term trend towards the bullish side. This breakout has caused sellers to lose control, and the daily chart shows a strong breakout from a parallel channel pattern.
The next hurdle for buyers could be the psychological level of $5, and if surpassed, it could lead to 35 to 40% gains for investors. The breakout is supported by a significant rise in transaction volume, indicating further potential for price growth. Technical indicators such as RSI and the 14-day SMA line also suggest a trend continuation.
However, if the price fails to hold above the recent support of $3.46, it could invalidate the bullish scenario and result in another price dump. Overall, the outlook for Pendle is positive, with the potential for further gains in September.