Pendle Price Eyes Breakout Above $2.35 Resistance as New Staking Model Goes Live

Source: CryptoNewsNet Original Title: Pendle price eyes breakout above $2.35 resistance as new staking model goes live Original Link: Pendle was trading at $2.07 at press time, up 9% over the past 24 hours, as rising open interest and a major tokenomics overhaul put the $2.35 resistance level back into focus.

The token has moved within a seven-day range of $1.86 to $2.31 and is down 2.9% over the past week. Still, it remains 9% higher on a 30-day basis, pointing to steady recovery after last month’s pullback.

Trading Activity

Trading activity has picked up alongside the price move. Pendle’s (PENDLE) 24-hour spot volume rose 34% to $63 million, suggesting renewed participation rather than thin, low-liquidity gains.

Derivatives data adds context to the move. Even though derivatives trading volume fell by about 9% to $67 million, open interest rose nearly 10% to $45 million.

That mix usually suggests traders are opening new positions instead of exiting old ones, pointing to increasing confidence in the current price move.

What’s Driving the Recent Move

The rally comes as Pendle rolls out a sweeping update to its staking and governance model.

On Jan. 20, the protocol announced that vePENDLE will be replaced by sPENDLE, a liquid staking token designed to remove multi-year lockups. Instead, sPENDLE introduces a 14-day withdrawal period, with an option for instant redemption at a fee.

Under the new structure, protocol revenue will be used for PENDLE buybacks and distributed to eligible sPENDLE holders. The manual gauge voting system will also be replaced by an algorithmic emissions model, which Pendle says will cut token emissions by roughly 30% while improving capital efficiency.

Existing vePENDLE holders are not being left behind. They will receive a boosted sPENDLE balance up to 4x, depending on remaining lock duration, captured via a snapshot scheduled for Jan. 29 when new vePENDLE locks will be paused.

Pendle said the changes address long-standing issues with vePENDLE, including low participation, capital inefficiency, and a complex weekly voting process that favored a small group of advanced users.

Technical Analysis

From a technical standpoint, Pendle remains in a broader consolidation following its earlier sharp sell-off. Price has found its footing above the $2.00 mark, with repeated buy-the-dip activity pointing to a developing short-term base.

At the same time, the token is trying to stay above its 20-day moving average, a level that previously capped gains during the recent pullback. Bollinger Bands continue to tighten, suggesting volatility compression and a larger move ahead.

Momentum indicators are stabilizing as well. The relative strength index has recovered from oversold levels and is hovering near the neutral 45-50 zone. A move above 50 would add further weight to the bullish outlook.

The former breakdown zone between $2.30 and $2.35, which has frequently capped recent rally attempts, is one area to keep an eye on. A move toward $2.60 could result from a daily close above this range, which would indicate a significant change in momentum.

A prolonged stay below $1.95, however, would reduce the likelihood of a recovery and suggest that sellers are starting to take back control. Until either level is decisively broken, Pendle is likely to move sideways.