Pendle Price Breaks Below $2? Arthur Hayes Flee Signals Bigger Drop Ahead

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As a seasoned crypto investor with over a decade of experience in this dynamic market, I’ve learned to read between the lines and interpret the signals that the market sends. The recent surge in Pendle price is indeed promising, but the potential risks should not be overlooked.

For the second half of September, the cryptocurrency market maintains its optimistic stance, with Bitcoin aggressively trying to regain the level of $60,000. Many prominent altcoins, including Pendle, experienced a significant increase in price during Monday’s trading, reaching a 50-day peak of $3.68 for Pendle. However, this upward trend could be threatened by the development of bearish patterns and selling activity from large investors.

Whale Holders Slash Pendle Holdings Amid Price Drop

Arthur Hayes, the creator of BitMEX and a well-known cryptocurrency trader, recently disposed of 350,000 PENDLE tokens for a total loss of $1.26 million. As per Lookonchain’s data, Hayes originally obtained 392,911 PENDLE tokens at an approximate cost of $2.2 million, with an average price of $5.6 per token, from the liquidity provider Wintermute between May 20 and June 21 in the year 2024.

Yet, the cost of Pendle dropped by more than 40% within the next three months, forcing Arthur to sell off his holdings and sustain a total loss of $790k.

Arthur Hayes(@CryptoHayes) sold 350K $PENDLE($1.26M) at a loss in the past hour.
He bought 392,911 $PENDLE($2.2M) at ~$5.6 through #Wintermute from May 20 to June 21.
Approximately three months after the fact, PENDLE experienced a decline of more than 40%, leading him to dispose of it for a total loss of $790,000 (-36%).
— Lookonchain (@lookonchain) September 20, 2024

Furthermore, Santiment analytics indicate a decreasing pattern in the holdings of large investors since March 2023. The graph below underscores that wallets classified as ‘whales’ (holding between 1 Million and 10 Million Pendles) have reduced their coin holdings to approximately 37.05 million coins.

Generally speaking, when experienced investors (or “smart money”) start selling, it could suggest a prolonged downturn and may affect the overall market attitude negatively.

Pendle Price Breaks Below $2? Arthur Hayes Flee Signals Bigger Drop Ahead

Pendle Coin Hints Temporary Rally With Bear Flag

Over the past six weeks, the value of Pendle has significantly climbed from $1.82 to $3.55, marking a substantial 95.44% surge. This upward movement was largely driven by anticipation surrounding potential Federal Reserve interest rate cuts. Interestingly, the price stabilized between two ascending trendlines, forming what appears to be an inverted flag pattern.

This chart configuration illustrates a significant downward trend depicted as a long ‘spike’, with two converging lines suggesting a brief uptrend. The digital asset Pendle, valued at approximately $3.2 billion, is presently trading at $3.56. There’s resistance above due to the 200-day exponential moving average.

If the current trend continues, the price of the coin might drop by approximately 15.5%, potentially breaching its lower support line at around $3. A decline following this breakdown could intensify the bearish movement and possibly extend a 40% drop to the support level of $1.82.

Pendle Price Breaks Below $2? Arthur Hayes Flee Signals Bigger Drop Ahead

Instead, should the Pendle price successfully regain its 200-day Exponential Moving Average (EMA) and break through the upward-sloping trendline, there may be an effort by buyers to revisit the $4.8 mark.

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2024-09-20 15:18