Pendle Price Eyes $5 Rally as Major Support Holds Against Whale Sell-Off

Since last weekend, the cryptocurrency market has showcased a consolidation trend as digital assets try to stabilize from the recent sell-off. Amid the sideways action, the market sentiment saw a slight uptick on Monday as Bitcoin jumped 4% to revisit $58200. The altcoin market is capitalizing on the reduced supply pressure to establish a local bottom. This phenomenon is evident in the Pendle price, as it seeks support at a multi-month ascending trendline for a potential rebound.

Also Read: Bitcoin MVRV Turns Negative First Time Since March 2023, End of Bull Run Soon?

Pendle Price: Whale Transfers $3.8M Worth of Pendle to Binance

The first week of July notably extended corrections in Pendle coin as the price fell below $5 to $3.2, registering a loss of 36.6%. Amid this downfall, the altcoin lost several crucial technical support levels, including the 23.6% Fibonacci retracement, the 200-day EMA, and the $3.8 mark, accompanied by a significant whale sell-off. 

Despite this, sellers did not sustain the breakdown, and the Pendle price encountered renewed buying pressure at the support trendline around $3.5.

A recent on-chain analysis by Lookonchain has highlighted a significant movement of PENDLE tokens. Earlier today, a whale transferred out 1.1 million PENDLE, valued at approximately $3.8 million, to Binance, presumably for sale. This transfer has left the whale with 1 million PENDLE, valued at around $3.5 million.

https://twitter.com/lookonchain/status/1810152704129564708?ref_src=twsrc%5Etfw” rel=”nofollow

Lookonchain’s analysis also reveals that this whale accumulated a total of 3.44 million PENDLE from both centralized and decentralized exchanges between February 9 and April 27, 2023. The average acquisition price for these tokens was only $0.32.

The recent sell-off may suggest that smart money traders are looking to reduce their exposure to Pendle or book profits due to a lack of expectation for a major price move.

Also Read: Japan’s Metaplanet Buys Another Bitcoin Dip, Will The Stock Rally Continue?

The aforementioned support trendline intact since October 2023 maintains a stable higher low formation in Pendle indicating the active accumulation from buyers.

If the support holds, the buyers could reclaim 200D EMA, drive a recovery to $5, and challenge the overhead trendline. A break beyond this barrier is crucial to signal a fresh recovery trend.

Technical Indicator:

• Exponential Moving Average: A potential bearish crossover between the 50-and-100-day EMA could prolong consolidation above the long-coming support.
• Moving Average Convergence Divergence: A bearish crossover state between the MACD and signal line highlights the price action is yet to develop as a suitable reversal sign.

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