Pendle (PENDLE), a tokenized yield protocol on Ethereum, jumped 11.79% to $1.83 on May 5 as a 344% spike in trading volume indicated aggressive buying pressure was returning to the market. The move pushed the token toward a critical resistance level as derivatives data shows a significant buildup of leveraged long positions.
Data from CoinGlass confirmed a surge in leveraged participation, with Open Interest (OI) in PENDLE perpetual futures rising 22.03% in 24 hours to $93.80 million. The OI-Weighted Funding Rate flipped positive to 0.0048%, indicating that traders with long positions are now paying a premium to maintain them, a sign of strengthening bullish conviction.
The rally was supported by strong underlying trend momentum. The Directional Movement Index (+DI) held at 33.67, well above the -DI of 7.33, while the Average Directional Index (ADX) rose to 54.26, confirming the presence of a strong, established trend, according to the source article's analysis of TradingView data. This combination of spot volume, rising open interest, and positive funding suggests the rally is driven by new capital and leveraged bets rather than just short covering.
The immediate test for PENDLE is whether it can break and hold above the $1.89 resistance zone. A successful push through this level could extend the rally, while a rejection risks a rapid pullback. With a high concentration of leverage, a failure to break resistance could trigger a cascade of long liquidations, pushing the price back toward the previous support level around $1.57. The situation mirrors dynamics seen in other altcoin rallies, where leveraged positions amplify both gains and subsequent corrections.
This article is for informational purposes only and does not constitute investment advice.
