- PENDLE token price is surging following the Ethena (USDe) partnership.
- Technical analysis points to $7.80 as the next target with potential for double-digit prices.
- A breakout above the key support at $5.23 opens the door to retest the $7.50 ATH.
The PENDLE token has been on a remarkable upward trajectory in recent weeks, gaining over 53% in the past month and surging 21.6% in the last 24 hours alone.
Market momentum has intensified following the announcement of a strategic partnership between Pendle Finance and Ethena, integrating the rapidly growing USDe stable asset into Pendle’s yield-generating ecosystem on HyperEVM.
These pools are launching initially with limited capacity:
• $100M cap for sUSDe (Sep ‘25)
So be sure to get in early! pic.twitter.com/vYJzqDSRYQ
— Pendle (@pendle_fi) August 7, 2025
This collaboration, combined with strong technical signals, could set the stage for the token to retest its all-time high of $7.50 and potentially break into double-digit territory.
Ethena integration fuels a powerful looping strategy
The heart of the bullish sentiment lies in the innovative “looping” strategy enabled by the partnership.
Pendle’s unique model splits assets into Principal Tokens (PT) and Yield Tokens (YT).
With USDe now integrated, users can buy PT with USDe to lock in fixed yields, then borrow USDC against these PTs on Aave. The borrowed USDC can be used to acquire more USDe, allowing the process to repeat.
This cycle has proven lucrative as PT yields currently average 8.8% above Aave’s borrowing costs, which range between 4% and 6%. Aave earns 10% of the borrowing fees, while Pendle charges a 5% fee on PTs.
Importantly, $4.3B (60% of total USDe) has been locked in Pendle and $3B deposited in Aave, underscoring the depth of this integration.
1/ Ethena’s USDe supply is up $3.7B in just 20 days, driven primarily by the Pendle-Aave PT-USDe looping strategy.
With $4.3B (60% of total USDe) now locked in Pendle and $3B deposited in Aave, here’s a breakdown of the PT loop mechanics, growth vectors, and potential risks:
— shaunda devens (@shaundadevens) August 6, 2025
In addition, Pendle’s TVL is heavily concentrated in Ethena’s USDe market, accounting for approximately 60% of the entire protocol’s TVL.
To reduce liquidation risks, the Aave DAO has pegged USDe to USDT’s value, adding a layer of stability to the strategy.
However, profitability depends on PT yields staying above borrowing costs. If yields fall, the strategy’s appeal could weaken.
The potential for further expansion will also hinge on whether Aave increases its collateral caps, which would allow for greater participation in the loop.
Whale moves $4.65M worth of PENDLE tokens
Adding to the bullish environment, on-chain data revealed that a multisignature wallet linked to Pendle deposited 900,000 PENDLE — worth roughly $4.65 million — into Binance.
While the Pendle team has not disclosed the reason, market observers suggest the move could be aimed at enhancing liquidity, supporting market-making, or preparing for strategic expansion.
Within 24 hours of the transfer, PENDLE’s price jumped 27.2%, reflecting investor optimism.
Such movements highlight the importance of tracking blockchain activity, as large transfers often precede major announcements or market shifts. However, they can also increase short-term volatility.
PENDLE token price analysis points to higher targets
From a technical perspective, the PENDLE token has reclaimed the mid-range of its long-term trading structure, broken above a key resistance trendline, and retested it as support.
Indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) remain positive, signalling that bullish momentum is intact.
Going by market analysis from popular analysts, $5.23 is a critical support level that PENDLE must hold. Additionally, a move above $5.53 could open the path toward $5.77, with $6.30 as the next resistance.
Furthermore, the wave count pattern points to a powerful third sub-wave in progress, with an initial target at $7.80, which is 1.61 times the length of the first wave.
Notably, a breakout above the 2025 high would likely accelerate the climb toward new all-time highs and possibly double-digit prices.
With strong fundamentals from the Ethena partnership, a surging TVL, favourable technical patterns, and heightened market interest, PENDLE token appears well-positioned for further growth.
