UNIVERS OF SIGNALS| Deep Search: In-Depth Of PENDLEIn this analysis, I want to fully analyze and review the Pendle project for you. First, we will read about the project's fundamentals and then perform a technical analysis.
◽️What is Pendle?
▪️Pendle is a decentralized finance (DeFi) protocol that enables the tokenization and trading of future yield. It introduces an innovative financial infrastructure that allows users to separate and trade the ownership of principal assets and their yield independently. This enables users to execute advanced yield strategies and provides more flexibility in managing yield-bearing assets.
🗝Key Components of Pendle
1. Yield Tokenization:
Pendle allows users to wrap yield-bearing tokens into SY (Standardized Yield Tokens), making them compatible with Pendle's AMM.
◽️These SY tokens are then split into two components:
▪️PT (Principal Token): Represents the principal value of the asset.
▪️YT (Yield Token): Represents the future yield generated by the asset.
This process allows for the separation of principal and yield, enabling users to trade them separately.
2. Pendle AMM (Automated Market Maker)
▪️Pendle's unique AMM is designed to support assets that experience time decay, allowing for efficient trading of PTs and YTs. Users do not need to fully understand the AMM mechanism to trade on Pendle.
3. vePENDLE Governance Model
▪️Pendle incorporates a vePENDLE model (vote-escrowed PENDLE), which enables users to participate in governance, directing incentives within the ecosystem and optimizing their yield strategies.
◽️Use Cases of Pendle
▪️Pendle's protocol enables a variety of financial strategies, including:
1) Fixed Yield Investments: Users can lock in fixed returns by selling their YT and holding PT.
2) Long Yield Positions: Users can buy YT, speculating that yields will increase.
3) Enhanced Yield Without Additional Risk: Providing liquidity in Pendle's pools can generate additional yield.
4) DeFi Yield Optimization: Combining different strategies to maximize yield opportunities.
◽️ Pendle Token Unlock and Allocation
▪️Unlocked Tokens: 283.33M PENDLE (92.14%)
▪️Locked Tokens: 24.17M PENDLE (7.86%)
◽️There are no large upcoming unlock events, but scheduled unlocks will occur gradually.
🔓Unlock Schedule
▪️From February 17, 2025, onward, small daily unlocks will take place, each unlocking around 9,750 - 9,980 PENDLE worth approximately $35,000 USD per batch.
◽️Token Allocation Breakdown
▪️Liquidity Incentives: 37%
▪️Team: 22%
▪️Private Round: 15%
▪️Ecosystem Fund (Allocated): 9%
▪️Ecosystem Fund (Unallocated): 9%
▪️Liquidity Bootstrapping Pool: 7%
▪️Advisors: 1%
▪️Vesting Schedule
◽️Team Tokens: 1-year cliff, then linear unlock over 1 year (50.98M PENDLE).
◽️Private Round: Linear unlock over 1 year after TGE (34.76M PENDLE).
◽️Ecosystem Fund: Unlocked in batches (20.86M PENDLE).
◽️Liquidity Bootstrapping Pool: 100% unlocked at TGE (16.22M PENDLE).
◽️Advisors: Linear unlock over 1 year (2.32M PENDLE).
◽️Untracked Tokens: 106.59M PENDLE (46%) – may be unlocked at any time.
◽️Pendle Wallet Compatibility
◾️Pendle is supported by various hardware, software, and extension wallets, including:
▪️Hardware Wallets: Ledger Nano X, Ledger Nano S, Trezor Model One, Trezor Model T, Ledger Stax.
▪️ Extensions: MetaMask, Enkrypt.
▪️ Software Wallets: GUARDIA, Atomic Wallet, Trust Wallet, MyCrypto.
▪️ Network Compatibility: ERC-20.
◽️Key Events & Developments
✅ Launch of Pendle Protocol – Established the foundation for yield tokenization and trading.
✅ Security Audits & Enhancements – Ongoing improvements for protocol security.
✅ Partnerships & Integrations – Expanding utility within the DeFi ecosystem.
✅ Exchange Listings – Increased accessibility and liquidity.
✅ New Pool Launches – Expanding yield opportunities.
✅ Community Growth & Governance – Active participation in decision-making.
◽️ Private Round (Ended on April 16, 2021)
▪️Funds Raised: $3.7 million
▪️Token Price: $0.1394 per PENDLE
▪️Pre-Valuation: $35 million
▪️Notable Investors: Alliance and 14 other investors
◽️Token Generation Event (TGE) & Public Listing (April 28, 2021)
▪️Price on Listing: $1.01 per PENDLE
◽️Reliable platforms for creating liquidity pools for Pendle:
▪️Uniswap
▪️Balancer
▪️Camelot
▪️LFJ
▪️Thena
▪️Pendle Finance
Reliable platforms for staking:
▪️Pendle Finance
▪️Magpiexyz
▪️Stake Dao
◽️Pendle TVL Analysis
▪️The Total Value Locked (TVL) in Pendle has shown significant growth over time, with notable fluctuations. Throughout 2024 and early 2025, the TVL followed an uptrend, peaking around mid-2024, experiencing a dip, and then recovering to new highs in early 2025.
📈 Current TVL & Percentage Change
▪️TVL on September 27, 2024: 801.26K ETH
▪️TVL on February 16, 2025: 1.91M ETH
◽️Pendle's TVL has more than doubled (+138.4%) in the last 5 months. after a temporary decline in late 2024, the platform has experienced a sharp rebound, reaching a new peak in early 2025. The TVL surge indicates higher participation and liquidity influx into Pendle, possibly driven by increased staking, new integrations, or higher user engagement in yield strategies.The TVL surge indicates higher participation and liquidity influx into Pendle, possibly driven by increased staking, new integrations, or higher user engagement in yield strategies.
◽️Analysis of On-Chain Data for Pendle
▪️The volume of Pendle tokens currently held at a loss within the price range of $3.61 to $3.71 is approximately 100 million PENDLE, indicating a significant resistance level. In contrast, the volume of tokens in profit is relatively low, suggesting that resistance is stronger than support at this stage.
▪️The volume of large transactions has exhibited a slight increase alongside price growth, signaling increased market activity. Additionally, network activity, including the number of active and new addresses, has also seen a minor uptick.
▪️Currently, 69% of all PENDLE tokens are held by whales, meaning that their movements have a substantial impact on market trends.
▪️Examining the wallet activity of large holders, we observe positive inflows, which is a bullish signal. However, network whales (addresses holding between 1 million and 100 million PENDLE) have started selling as prices increased, indicating some profit-taking behavior.
▪️Meanwhile, addresses holding less than 1 million PENDLE have increased their buying activity, contributing to sustained price growth. This suggests that retail investors and smaller holders are absorbing the supply offloaded by larger holders, helping to maintain upward momentum.
✅ Now that we have reviewed the project, let's move on to the technical analysis of this coin, which will be done in weekly, daily, and four-hour timeframes.
📅 Weekly Timeframe
In the weekly timeframe, we are observing an ascending trend that started from a base of $0.561 and continued up to a peak of $6.720, providing very good profits to its holders.
🔍 After the price reached this resistance, a ranging box formed between $2.385 and $6.720, where the bottom of the box coincides with the 0.382 Fibonacci area. This support has so far managed to support the price several times, each time sending the price back towards the top of the box.
✨ Currently, the price has hit this support with a very high volume and has formed a good supportive candle. Now we have to see if this support can again push the price upwards or if it will be broken. The RSI is also below 50, and if it sets lower highs and lows, it could continue its downward trend, bringing bearish momentum into the market.
🚀 On the other hand, if it can come back above this area 50 and stabilize, we can hope that the price will move upwards and bullish momentum will enter the market. If we want to use the Fibonacci tool for the target of this project for this move, you can see that the 1 Fibonacci area is at $31.90, which is almost 10 times more than the current market price.
📊 This means that Pendle would reach a market cap of $5 billion, making it a very successful project and placing it among the top 30 coins in the coin market cap. So if you think this project can be among the first 30 coins and have a $5 billion market cap, you can continue to hold until this target is reached.
💥 However, if the support at $2.385 breaks, the next important support areas are at the 0.618 and 0 Fibonacci levels, which overlap with $1.412 and $0.941, respectively.
📅 Daily Timeframe
In the daily timeframe, you can see the price range box with more details. As you see, in the last downward leg, the price reached $2.589 and was supported by a good candle from this area, and currently, it has reached $3.678, which is an important daily resistance. If the price can stabilize above this area, we can expect the price to move towards the top of the box again.
📈 But consider that during this upward movement that the price has had from $2.589, the volume has been decreasing, which indicates the weakness of the trend. Also, for a long position, the RSI has an important area at 52.16, which is a very important resistance, and if the break of this area overlaps with the break of $3.678, we can have a confirmation of the entry of momentum and a good position.
⚡️ the important thing is that buying volume must also enter the market, and the candle that breaks this resistance must be with good buying volume. For a short position, the situation is very clear; the support at $2.589 is a very good area, and if it overlaps with the break of 30 in the RSI, it turns into a very good trigger, and I suggest that you do not miss this position if the conditions are met.
⏳ 4-Hour Timeframe
In the four-hour timeframe, we can specify the futures trading triggers so that we can also perform futures trading with them.
🔼 For a long position, our situation is very clear. As you see in the daily timeframe, there is a very good ceiling above the price, which in the four-hour timeframe is at $3.763, and if this area breaks, we can open a risky long position. The main long position is if the break of $4.364 happens.
📉 But keep in mind that as I mentioned, the decreasing volume and the divergence with the upward trend can indicate the weakness of the upward trend. So, as a result, if the ascending trendline breaks and the trigger at $3.319 is activated, I personally try to have a short position on PENDLE.
🧩 Because the volume has a divergence with the upward trend, and if the selling volume increases after the break of this area and downward momentum enters, the price can move at least to the area of $2.2748, which is actually a very important support and will be the main trigger for short. The break of 45.48 in the RSI gives us a very good confirmation for the short position.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️
