Price Analysis

Pendle Price Recovery Faces Whale Headwinds, Will $5 Support Hold?

A partial profit booking from a smart money trader hints at a potential consolidation for Pendle price below $7.5 resistance.

Published by

Sahil Mahadik

Updated 15 Apr, 2024 | 03:04:43 PM UTC

Pendle Price Recovery Faces Whale Headwinds, Will $5 Support Hold?

Highlights

A healthy retracement sets the Pendle coin to rechallenge the $7.5 resistance for prolonged recovery.
The midline of the Bollinger Band indicator acts as suitable dynamic support for Pendle.
The intraday trading volume in Pendle is $201 Million, indicating a 20% loss.

Pendle, a decentralized finance (DeFi) protocol, showcased notable resilience to the recent market sell-off, with its coin price rebounding from $4.9 support. This positive upswing recorded 42% growth within three days and pushed the asset value to $6.97. Moreover, with the upcoming Bitcoin Halving just around the corner, the broader is expected to witness a renewed recovery potential impact on the Pendle price for higher recovery.

Also Read: 3 Altcoins Whales Are Buying To Make Millions

Whale Transactions Hint at Cautious Optimism for Pendle Price Recovery

Pendle Price| Tradingview

Despite broader market consolidation, Pendle coin has shown a robust recovery since mid-March, surging 225% from $2.30 to a high of $7.53. However, the geopolitical issue in the Middle East triggered a temporary pullback to $4.9, before the asset regained its above at $6.88.

As per the Fibonacci retracement tool, the Pendle rebounded from the 50% pullback, indicating constructive correction which allowed buyers to recuperate its strength. With an intraday gain of 1%, the coin buyers are likely to challenge the swing high resistance of $7.53.

A successful breakout from this barrier will favor buyers with suitable flipped support to chase a higher price target of $10, followed by $12.

However, SpotOnChain recently reported a noteworthy transaction involving a wallet identified as 0x01f, which deposited 400K PENDLE tokens into Binance. This transaction came after a year of dormancy and is significant in value at approximately $2.68 million. The same wallet had previously vested 1.8 million PENDLE from Pendle Finance in 2022, valued at $264K at the time, and still holds 1.4 million PENDLE, now worth $9.42 million.

A possible interpretation of this transaction is that the whale does not expect an aggressive rally for Pendle price in the near term, and therefore booking partial profit.

Thus, a potential reversal from $7.5 may send the next downswing below $5 support.

Also Read: Galaxy Digital CEO Says Bitcoin “Will Resume Its Trend Higher” After Epic Bloodbath

Technical Indicators

Relative Strength Index: The daily RSI slope at 65% hints a marker participants project a bullish outlook for Pendle.
BB indicator: The upswing in the upper boundary of the Bollinger band indicator reflects retail buyers are still active toward this asset.

Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Published by

Sahil Mahadik

Updated 15 Apr, 2024 | 03:04:43 PM

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