The broader cryptocurrency market has experienced bearish momentum since the beginning of the week, with most digital assets trading in negative territory. Memecoins have suffered particularly steep declines due to their inherent volatility compared to other crypto sectors.
PENDLE, which serves as the native token for the Pendle ecosystem, has dropped 10% over the past seven days but shows signs of potential recovery. The token currently trades at $3.870, successfully maintaining its position above the critical $3.5 support level.
Boros Launch Could Drive Adoption
The key driver behind a potential price recovery centers on Pendle’s upcoming launch of Boros on Arbitrum. This new feature will enable users to trade funding rates for Bitcoin and Ethereum perpetual markets, expanding the platform’s functionality significantly.
So @pendle_fi just solved a problem most people didn't know existed. What is this @boros_fi everyone’s talking about?
Funding rates on CEXs like Binance aren't just numbers anymore. Think about it. When BTC funding hits -3% like last weekend, everyone rushes to long spot… pic.twitter.com/E5zcQSgdHA
— YashasEdu (@YashasEdu) August 6, 2025
Boros allows traders to take long or short positions on funding rate exposure through “Yield Units” (YUs), which share structural similarities with Pendle’s current Yield Tokens. Market observers believe this integration could substantially increase PENDLE’s adoption rates, potentially triggering upward price momentum in the coming weeks.
Technical Analysis Points to Recovery
The PENDLE/USD 4-hour chart displays bullish characteristics following the weekend’s liquidity sweep to the downside. This market efficiency suggests the token may be positioned for near-term gains.
Technical indicators currently favor buyers, with PENDLE establishing a temporary low at $3.6 after the weekend correction. Analysts anticipate the token could target the first major resistance level at $4.5 in the coming hours or days. Should bullish momentum extend further, PENDLE might attempt to retest its recent peak of $5.013.
The Relative Strength Index sits at 46, indicating diminishing selling pressure. However, sustained movement above the 50 level remains crucial for confirming a durable upward trend.
Conversely, if bullish momentum fails to materialize, PENDLE could revisit the weekend low of $3.6. A breakdown below this level would open the door to testing the $3.090 support zone, which hasn’t been visited since June.
Broader Market Sentiment Impact
The current bearish conditions across crypto markets may limit PENDLE’s immediate recovery potential despite positive technical indicators. However, the upcoming Boros launch could provide fundamental support that helps the token outperform broader market trends.
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