PENDLE Rally: New Deal with Coinbase-backed Protocol Sparked 20% Surge, What Next?

Key Insights

• $Pendle Finance recently partnered with Coinbase-backed Ondo Finance
• The partnership news triggered a 21% price increase and a 202% trading volume jump within 24 hours.
• Pendle's total value locked (TVL) surpassed $540 million for the first time, marking a significant milestone.
• DEX volume and staked supply for $PENDLE rose by 24% and 50%, respectively, indicating growing investor interest.
• Pendle's price climbed 166% in January and currently faces resistance at $2.67. A break above could lead to $3.19, but bearish risks still abound.

Pendle Finance, one of the newer platforms that allow its users to tokenize and trade future yields, is slowly taking the spotlight.

Just recently, Pendle Finance has just crossed an impressive milestone, after announcing a partnership with Ondo Finance, a protocol backed by Coinbase Ventures.

Here's everything you need to know about this partnership, the $PENDLE token, and what all of this might mean for you as an investor.

A Boost for PENDLE Token

In a recent post on X earlier this week, Pendle Finance announced that it is partnering with Ondo Finance.

Ondo finance has been a major headline in the crypto space for the past few weeks, especially after the total trade volumes for the $ONDO governance token hit a whopping $1 billion last week.

According to the announcement, this new Partnership will allow Ondo Finance users to leverage the "composability of our tokenized cash equivalents" with Pendle Finance's yield tokens.

The nitty-gritty details of the partnership are still under speculation, but the crypto community has been abuzz all day.

This excitement has trickled into the tokenomics of the $PENDLE token, causing a 20% surge over the last day.

According to data from CoinMarketCap, Pendle has exploded upwards by about 21% over the last 24 hours.

The cryptocurrency's 24-hour trading volume has also risen by a whopping 202% and now sits at around $93 million.

A Surge in Liquidity

This isn't all.

The liquidity of Pendle Finance has also gone sky-high as seen by the sudden spike in its Defi TVL.

According to data from DefiLlama and as shown by the chart above, Pendle's TVL has exploded to the upside just as suddenly as its price and now sits at around $540 million over the last day.

This marks the first-ever break above the $500 million threshold in terms of Pendle Finance's TVL.

In all, the cryptocurrency's DEX volume, as well as its staked supply have also gone up by 24% and 50% respectively.

What Should You Expect From $Pendle's Price

As shown by the chart below, Pendle became absolutely parabolic after rebounding off the $1 floor on 3 January.

In January alone, the cryptocurrency has rallied by a whopping 166% and is a long way up at $2.74 from $1.

Pendle currently trades in uncharted territory, making its possible price action hard to predict.

However, from a longer-term perspective, Pendle is bullish. If we apply the Fibonacci retracement tool to the cryptocurrency's price from here, we end up with this:

From the above, we can conclude that Pendle is currently testing resistance at $2.67.

If we see a break and close above this level, Pendle just might hit $3.19.

However, investors must keep in mind that Pendle is not completely safe from its bears yet and that the right price rejection at the right price level might cause a decline to as low as $2.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.