Pendle token prices have skyrocketed following the Ethena (USDE) partnership. Technical analysis points to $7.80 as the next target with double-digit price potential. A breakout that surpasses key support at $5.23 opens the door to retest the $7.50 ATH.
Pendle tokens have achieved an astounding upward trajectory in recent weeks, surpassing 53% in the past month and up 21.6% in the last 24 hours alone.
Following the announcement of a strategic partnership between Pendle Finance and Ethena, market momentum has intensified and the rapidly growing stable assets of USDE have been integrated into Pendle’s HypereVM yield generation ecosystem.
These pools are launching the first pool with limited capacity.
• Susde’s $100 million cap (September ’25)
So, make sure to get in early! pic.twitter.com/vyjzqdsryq
– Pendle (@pendle_fi) August 7, 2025
This collaboration, combined with a powerful technical signal, can set the stage as the tokens retest a history-high $7.50 and could infiltrate double-digit territory.
Ethena Integration drives a powerful loop strategy
The heart of bullish sentiment lies in the innovative “loop” strategy enabled by partnerships.
Pendle’s unique model divides assets into principal tokens (PTs) and rains down the tokens (YTs).
With USDE integrated, users can purchase PTs at USDE to lock down fixed yields and borrow USDC against these PTSs with Aave. The borrowed USDC can be used to get more USDEs and the process is repeated.
This cycle is proven profitable as PT currently averages 8.8% higher than Aave’s borrowing costs. Aave earns 10% of the borrowing costs, while Pendle charges 5% on PTS.
Importantly, $4.3 billion (60% of the USDE total) is trapped in Pendle, with $3 billion being deposited in Aave, highlighting the depth of this integration.
1/Ethena’s USDE supply has increased by $3.7 billion in just 20 days, driven primarily by the Pendle-Aave PT-USDE loop strategy.
With $4.3 billion (60% of the total USDE) locked into the pendle and $3 billion left at Aave, there is a breakdown of PT loop mechanics, growth vectors and potential risks.
– Shaunda Devens (@shaundadevens) August 6, 2025
Furthermore, Pendle’s TVL is heavily concentrated in the Ecena USDE market, accounting for around 60% of the protocol’s total TVL.
To reduce liquidation risk, Aave Dao has fixed USDE to the value of USDT and added a layer of stability to its strategy.
However, profitability depends on the yield of PT, which exceeds the borrowing cost. A lower yield can weaken the appeal of the strategy.
The possibility of further expansion also depends on whether Aave increases its collateral cap. This allows for greater participation in the loop.
Whale moves pendle tokens worth $4.65M
In addition to the bullish environment, on-chain data revealed that a pendle-linked multi-signature wallet deposited 900,000 pendles (worth around $4.65 million) on Binance.
The Pendle team has not disclosed why, but market observers suggest that the move is intended to improve liquidity, support market production, or prepare for strategic expansion.
Within 24 hours of transfer, Pendle’s price rose 27.2%, reflecting investor optimism.
Such moves underscore the importance of tracking blockchain activity, as large-scale transfers often precede large announcements or market changes. However, it can also increase short-term volatility.
Pendle token price analysis points to higher targets
From a technical standpoint, the Pendle token reclaimed the mid-range of the long-term trading structure that had broken above the main line of resistance trends and retested it as support.
Indices such as the relative strength index (RSI) and moving average convergence/divergence (MACD) are positive, indicating that bullish momentum is intact.
Going to market analysis from popular analysts, $5.23 is the key level of support that Pendle must hold. Furthermore, a move above $5.53 could pave the way to $5.77, with $6.30 coming in as the next resistance.
Furthermore, the wave counting pattern refers to a powerful third subwave with an initial target of $7.80, 1.61 times the length of the first wave.
In particular, a breakout that surpasses the 2025 high could accelerate climbing to new all-time highs and double-digit prices.
With the strong foundations of the Etena Partnership, the surge in TVL, favourable technology patterns and growing market interest, Pendle Token appears to be well positioned for further growth.
