As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull runs and bearish trends. The recent rally of Pendle to a four-month high has caught my attention, but it also raises some concerns that I believe are worth discussing.
The price of Pendle reached its highest point in four months due to optimism in the crypto market. It peaked at $5.69 today, extending a surge that began on August 5 when it hit a low of $1.828. However, this upward trend might face challenges following the sale of tokens by the development team.
Pendle Price Could Be At Risk As The Team Sells
Information from the blockchain indicates that some insiders at Pendle are offloading their tokens, which might serve as a warning sign for token holders.
According to data, it appears that an address associated with the Pendle group moved approximately 625,000 tokens to Binance last Friday. This action, which involves transferring tokens to a major exchange like Binance, is often the initial step taken by token holders who intend to sell them.
Additional evidence indicates that other whales have been transferring their tokens. Specifically, one account transferred approximately 1 million tokens valued at around $5.6 million to Binance. Furthermore, another user moved nearly 600,000 Pendle tokens worth an estimated $3.2 million to Binance on Friday. When considering all transactions in the last 24 hours, according to DeFi Llama, whales have sold off approximately $12.2 million worth of Pendle tokens.
As a researcher, I’ve noticed a strong possibility that sell-offs might be occurring due to the desire to cash in on gains since the Pendle token has experienced a significant surge, approximately doubling from its lowest point in August. Additionally, data from CoinCarp indicates that the top ten holders control a substantial 65% of the total circulating coins.
Still, news of insider sales could put the coin at risk of a reversal if other holders start to exit their trades as well.
Pendle Price Analysis Signals Major Reversal
Glancing at the day-to-day graph, it’s evident that the Pendle coin has been on a robust upward trend since August. Similar patterns are observed in other alternative coins such as Solana, which have experienced significant growth over the past few weeks.
This week’s Pendle rally was primarily fueled by the US election results, where Donald Trump emerged as the winner with a significant lead. Being a major player in the industry, Trump has promised to implement favorable policies aimed at expanding it.
The trend of Pendle’s price has created an upward sloping channel, linking the successive lower peaks and higher peaks starting from August. Now, it has returned to test the upper boundary of this channel.
The token’s chart has developed a ‘golden cross’ formation, indicating that its 50-day Weighted Moving Average (WMA) has intersected with its 200-day WMA.
After the Pendle token’s price reached the upper boundary of its trading range, some insiders made sales. If the closing price falls below $5.5, it might indicate the formation of a ‘shooting star’ candlestick pattern, potentially driving the price lower. In such a case, the token could slide down to the lower limit of its channel at approximately $4.8.
Additionally, if the price dips beneath the current channel, there’s a possibility it could plummet to $1.82 – its lowest point for the year. This represents a significant decrease of about 65% from its current value.
If Pendle coin surpasses the significant level of $6, this bearish prediction could be disproven, suggesting potential further increases that might reach the year-to-date peak of $7.5.
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2024-11-08 18:49