In recent weeks, Pendle (PENDLE) has captured the attention of crypto investors, showcasing a remarkable rally that defies the odds amidst significant sell-offs from large holders. With speculation swirling around potential U.S. Federal Reserve rate cuts, Pendle’s price has soared from $2.48 to $4.08—an impressive 64% increase. As the market stabilizes, the critical question remains: can Pendle continue its upward trajectory past the $5 mark, or will sellers mount a counterattack?
Overcoming Whale Sell-Offs
The past two weeks have been pivotal for Pendle. Notably, the co-founder of BitMex, Arthur Hayes, sold 1.59 million PENDLE tokens for about $5.62 million, averaging $3.52 per token. Despite this heavy selling pressure, Pendle demonstrated impressive resilience, surging by 24% following Hayes’s sell-off. Remarkably, after the initial price recovery, Hayes offloaded tokens worth approximately $6.91 million, leading to a potential loss of $1.29 million on his investments.
Adding to the intrigue, data from Santiment revealed a significant drop in Pendle’s supply on exchanges, falling from $37.58 million to $32.73 million during a recent trading session. Historically, reductions in exchange supplies have correlated with price recoveries, as seen during the formation of Pendle’s August 2024 bottom at $1.80. This trend indicates that diminished market supply can reduce selling pressure, giving buyers the upper hand in driving sustained recovery.
Major Breakout Signals a Bullish Shift
As of press time, Pendle recorded an 11% surge to $4.06, marking a decisive breakout from a rising wedge pattern that had constrained its recovery within two converging trendlines for the past seven weeks. This breakout signals not just resilience but also a readiness among buyers to push the asset higher.
The recent price movement has pushed Pendle above the 100- and 200-day Exponential Moving Averages (EMAs), a key indicator suggesting a positive shift in market sentiment. If this bullish momentum continues, analysts predict a potential rally to the $4.78 resistance level—representing a 17.5% increase from current prices. However, if the price retreats and re-enters the wedge pattern, the prevailing bearish sentiment could resurface, prompting a reevaluation of market dynamics.
The Road Ahead – Buyers vs. Sellers
The outlook for Pendle remains complex. On one hand, the asset’s ability to overcome significant sell-offs and break through key resistance levels speaks to a strong underlying demand. On the other hand, the presence of substantial sellers like Hayes could indicate a precarious balance in the market.
As investors watch closely, the coming days will be crucial for determining whether Pendle can sustain its rally and surpass the $5 threshold. Will buyers prevail and solidify Pendle’s newfound strength, or will sellers execute a counterattack? Only time will tell, but for now, Pendle remains a focal point in the ever-evolving landscape of cryptocurrency.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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