The Pendle crypto has recently garnered investors’ attention with a high momentum rally and defying the sell-off from large holders. The recovery trend initiated with the U.S. Federal Reserve rate cut speculation but gained stability with a key resistance breakout. Will Pendle price prolong its rally past $5, or are sellers waiting for a counterattack?
Pendle Price Overcomes Whale Sell-Off with Breakout Surge
In the last two weeks, the Pendle price shows an accelerated recovery from $2.48 to $4.08, a 64% increase. Amid the broader market recovery, discussions stand out as the asset defies substantial selling pressure from the co-founder of BitMex, Arthur Hayes. According to lookonchain, Hayes recently sold off 1.59 million PENDLE tokens for approximately $5.62 million at an average price of $3.52 per token.
However, the Pendle price displayed resilience to this supply pressure, as the asset surged by 24% after his sell-off. After the price recovery, Hayes sold tokens worth around $6.91 Million, indicating a potential loss of $1.29 Million.
Arthur Hayes(@CryptoHayes) sold 1.59M $PENDLE for $5.62M at an average price of $3.52 over the past 2 days.
After his sell-off, the price of $PENDLE surged by 24%, making the 1.59M $PENDLE worth $6.91M now.
His sell-off resulted in a loss of ~$1.29M!https://t.co/HNWw2RiuDO pic.twitter.com/IWvDTrc0Qt
— Lookonchain (@lookonchain) September 22, 2024
Interestingly, the Pendle Supply on exchanges suddenly dropped from $37.58 Million to $32.73 Million during the Sunday trading session. According to Santiment data, similar reductions in exchange supplies have historically supported Pendle price recovery, like the formation of its August 2024 bottom at $1.8.Â
Generally, a decrease in the available supply of tokens on exchanges reduces the market selling pressure and bolsters buyers for sustained recovery.
Pendle Price Signals a Major Breakout From Wedge Pattern
By press time, the Pendle price recorded an 11% surge to $4.06, providing a decisive breakout from the rising wedge pattern. In the past seven weeks, this chart set up a confined recovery between two converging trendlines, but the recent breakout signals the buyer’s readiness for an accelerated rally.
In addition, the recent jump pushed the altcoin above 100-and-200-day Exponential Moving Averages (EMAs), signaling a positive shift in market sentiment. If the bullish momentum holds, the buyers could drive a 17.5% surge to $4.78 resistance, followed by an extended value of $2.68.Â
On the contrary, if the potential retest to the breached trendline re-enters the wedge pattern, the prevailing correction sentiment could resume.
Frequently Asked Questions (FAQs)
Pendle demonstrated resilience following Arthur Hayes’ sale of 1.59 million tokens. Despite the sell-off, Pendle’s price surged by 24%, reflecting strong buyer demand and market confidence.
A bullish crossover between the 20-day and 50-day EMAs, along with a decisive breakout from the rising wedge pattern, suggests accelerating recovery momentum
If the bullish momentum continues, Pendle could target a 17.5% rise to $4.78 resistance, with an extended rally toward $5
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
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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