Pendle Price Sees Major Reversal Amid Institutional Buying Spree

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As a seasoned analyst with years of experience dissecting the cryptocurrency market, I find myself intrigued by the recent developments surrounding Pendle. The price decline has been a rollercoaster ride, to say the least, but the latest institutional interest is a beacon of hope in this bearish landscape.

The price of Pendle continued its steady holding from previous periods, as the overall market experienced an increase in supply due to Bitcoin‘s drop below $70000 on Monday, causing renewed selling pressure and pushing Pendle toward multi-month support levels that could lead to a bearish collapse. However, recent acquisitions by prominent institutions suggest a possible reversal of this trend.

PENDLE Price Decline Meets Institutional Interest

In the past three hours prior to this report, it was observed that institutions, including DWF Labs, have been actively removing PENDLE tokens from Binance. Specifically, DWF Labs withdrew about 117,563 PENDLE tokens, which is equivalent to around $424,000 in value.

Pendle Price Sees Major Reversal Amid Institutional Buying Spree

Over the past six days, a noticeable pattern has emerged, according to Spotonchain’s on-chain data tracker. Two prominent institutions, including HashKey, have withdrawn substantial amounts of PENDLE from Binance. Even though the price is declining, these continuous withdrawals by these entities could signal a potential shift towards a bullish market reversal.

DWF Labs (@DWFLabs) just withdrew 117,563 $PENDLE ($424K) from #Binance ~12 minutes ago.
Keep in mind that within the last six days, two intelligent organizations, namely HashKey and DWF Labs, have removed their PENDLE tokens from Binance.
Follow @spotonchain for more updates about #DWFLabs and $PENDLE.…
— Spot On Chain (@spotonchain) July 31, 2024

 

Pendle Price Stands at a Critical Juncture

For the last two months, the price of Pendle has experienced a substantial drop, evident in a steep decrease from its high of $7.25 on May 25th, which represents a 50% fall to $3.62. This decline also led to a reduction in its market capitalization to approximately $570 million.

As a seasoned cryptocurrency investor with years of experience under my belt, I have observed that market trends can be unpredictable and volatile. This altcoin, which has been part of my portfolio for some time now, has faced challenges in overcoming an upward trendline that serves as dynamic resistance. Despite the market’s rebound in July, it failed to take advantage of this opportunity. However, a recent dip in the Average Directional Index (ADX) indicator to 19% suggests that the current bearish momentum may be weakening. This could potentially indicate a shift in the trend for this altcoin, and I’m keeping a close eye on it to see if it breaks through the resistance level. It’s always important to stay vigilant and adaptable in the ever-changing world of cryptocurrency trading.

Based on an examination of the daily graph, it appears that Pendle has been consistently finding support at a rising trendline which has been in place since December 2023. This trendline has historically sparked increased buying activity and could potentially lead to a 24% price increase, challenging the significant resistance level above.

Clearing the descending trendline might stimulate a fresh surge in Pendle’s revival, possibly pushing its value upwards to the projected levels of $6.28 and later $7.28.

Pendle Price Sees Major Reversal Amid Institutional Buying Spree

In a reversal, Pendle is approaching a crucial level of support, and a recent downtrend indicated by the 20-day and 200-day Exponential Moving Averages (EMAs) crossing over could exacerbate the downward trend. If this support gives way, it would contradict any optimistic forecasts, potentially causing the price to drop to around $2.3.

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2024-07-31 22:28