Pendle Price Prediction: $3 Support at Risk As Network TVL Drops 47%

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As an experienced analyst, I believe that the recent bearish trend in Pendle’s price is a cause for concern. The cryptocurrency market’s renewed supply pressure and Bitcoin’s fall below the $60,000 support have added to the pressure on altcoins like Pendle.

On Wednesday, the cryptocurrency market experienced renewed selling pressure after a week-long pause. This led to a resumption of bearish trends in many major altcoins, including Pendle. The downturn was triggered by a 4% drop in Bitcoin‘s price, which fell below the $60,000 support level. As a result, Pendle is now approaching a crucial support zone consisting of $3.82 and a 23.6% Fibonacci retracement level. This significant support could indicate either further declines or a potential reversal.

Pendle Price Prediction: Critical Support Levels Amid Market Decline

Pendle Price Prediction: $3 Support at Risk As Network TVL Drops 47%

Pendle is a decentralized finance platform that focuses on the trading of future returns of cryptocurrencies. It enables users to efficiently manage and take positions on potential yield fluctuations. In the current market scenario, which has seen minimal directional movement for several months, the price of Pendle has had difficulty climbing above the $7.3 mark as indicated by two downward trends in its daily chart.

As a crypto investor, I’ve noticed that the second price peak was significantly lower than the first, indicating insufficient buying momentum to drive a strong rally. This bearish trend has caused the asset to drop by 45% in just six weeks, reaching a trading price of $3.95. The market capitalization has also taken a hit, plummeting down to $619.8 million.

As a crypto investor, I’ve noticed that the Total Value Locked (TVL) on the Pendle Network has taken a significant hit during this market downturn. At its height on June 7th, it stood proudly at $6.72 billion. However, it has since dropped drastically to around $3.54 billion, representing a sizable decrease of approximately 47.3%.

Pendle Price Prediction: $3 Support at Risk As Network TVL Drops 47%

The substantial decrease in Total Value Locked (TVL) implies less capital has been committed or invested in the network. This could be a sign of diminishing investor trust or a strategic shift of resources towards other investments due to evolving market circumstances.

The Pendle’s price dropped by 2.76% intraday, reaching the significant support zone consisting of $3.82 and the 23.6% Fibonacci retracement level. This area is theoretically vital for buyers to mount a comeback.

A possible shift in direction might lead the Penline price to move sideways and test the $7.3 resistance level.

In contrast, if the price of Pendle falls below the support level of $3.82 and ends the day with a bearish candlestick pattern, it could increase the demand for selling and potentially cause the price to drop further, possibly reaching $3.2.

Technical Indicator:

  • EMAs: A potential reversal from $3.82 support will allow the buyers to regain the 200D Exponential Moving Average and restore the bullish sentiment among traders.
  • RSI:  The daily Relative Strength Index slope on the verge of entering the oversold region( below 30) could attract a dip in the market.

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2024-07-03 23:10