• PENDLE is losing momentum as price fails to hold near $4.10 and now tests key support at $3.60.

  • If $3.60 breaks the next support sits near $2.00 which matches past breakdown zones seen in the chart.

  • Price action shows rejection candles and sellers gaining strength while support weakens near current levels.

Pendle (PENDLE) is showing weakness as it approaches the $3.60 support, threatening to lose bullish structure on the 3-day chart. A close below this level may open the path to a sharp drop, with downside targets near $2.00. At press time, PENDLE trades at $3.83, down 4.56% on the day.

Source: X

Market analysts have pointed to $3.60 as a critical zone that has supported price since April. The asset has already failed to sustain the recent high of $4.12 and now trades in a tightening range. If support gives way, technical indicators suggest a slide toward $2.00 may follow quickly.

This current formation raises a vital question for traders: Can Pendle defend the $3.60 floor, or is a drop to $2.00 inevitable?

Key Support at $3.60 Tested Once Again

The $3.60 level on the 3-day chart has emerged as a defining line between bullish continuation and bearish breakdown. This zone previously acted as a springboard for rallies toward the $4.80–$5.00 region. Losing it now would represent a failure to maintain upward momentum.

PENDLE has revisited this zone multiple times over the last quarter. Each bounce from this region has shown weakening follow-through, suggesting buying pressure may be fading. The latest pullback follows a failed attempt to reclaim $4.10, which marked a local top last week.

The asset now sits just above $3.80, giving it a narrow margin to hold before a breakdown is confirmed. Market sentiment may shift quickly if a daily or 3-day candle closes below $3.60 with strong volume. Traders are watching this area closely for confirmation.

Breakdown Could Open Path to $2.00 Target

A daily close under $3.60 would invalidate recent higher lows and create space for a larger corrective move. Based on the chart structure, the next major support lies near the $2.00 level. This target has historical confluence from previous accumulation phases.

The drop from $3.60 to $2.00 would mark a 44% decline, which matches previous downward moves within Pendle’s broader volatility range. Traders often respond quickly to such technical failures, especially if volume rises alongside breakdown confirmation.

Historical data shows that once $3.60 fails, the next support zone offers little friction. The absence of strong demand zones between $3.40 and $2.00 makes this area vulnerable to swift moves. Short-term traders may use this setup to manage risk or identify short entries.

$3.83 Price Holds But Structure Looks Weak

As of now, PENDLE is holding slightly above $3.80, but price structure continues to deteriorate. Candle wicks suggest buyer attempts are being sold into near each resistance. The momentum appears to favor sellers as the chart shifts closer to critical support.

Multiple rejections at the mid-$4.00 zone over the past few weeks confirm heavy overhead supply. If buyers fail to create higher highs, confidence in a sustained uptrend may weaken further. This adds weight to the bearish scenario unfolding if $3.60 fails to hold.

Until price flips back above $4.10 with strength, PENDLE may remain range-bound or face increased downside risk. With historical volatility increasing near these levels, the next few candles could prove pivotal for short-term direction.