Pendle (PENDLE) has been on a downward trajectory for over six months, facing rejection at higher price levels and recently reaching a low of $2.02. Currently, PENDLE is trading around $2.17, reflecting a 4.1% daily decrease and an 18.5% drop over the past month, signaling persistent selling pressure in the market. This extended weakness appears to have led to capitulation among long-term investors, including significant institutional players.
Polychain Capital Exits, Realizing a Loss
Despite occasional brief rallies in the past month, whale behavior has remained consistent. Data indicates substantial buy orders from large investors over the past 30 days. However, a significant portion of these transactions seem to be geared towards distribution rather than accumulation.
A notable event involves Polychain Capital, which, after holding Pendle tokens for several months, liquidated its entire position. The company had accumulated approximately 4.114 million PENDLE between March and September at an average price of around $3.16, totaling nearly $13 million. After about four months, the firm sold at approximately $2.19, incurring an estimated loss of $3.99 million. Such a large-scale sell-off often signifies a shift in investment sentiment, with confidence eroded by sustained downward pressure.
Persistent Selling Pressure
This trend isn't isolated to a single wallet. Data reveals that Pendle has recorded negative Buy Sell Delta for nine consecutive days, confirming that selling pressure in the spot market remains dominant.
Negative Delta: Indicates that sell orders are outpacing buy orders, reinforcing the sellers' position.
Will the $2 Support Level Hold?
According to market analysis, Pendle's downtrend shows no immediate signs of reversal as sellers continue to control price action. On the daily chart, the Relative Strength Index (RSI) has fallen to 36, pushing Pendle closer to oversold territory.
Additionally, the Directional Movement Index (DMI) shows the Positive Directional Indicator (PDI) declining to 13, indicating strong downward momentum. These signals generally support the continuation of the existing downtrend.
If selling pressure persists, Pendle risks losing its crucial $2 support level, potentially leading to a deeper correction towards the $1.80 area. To stabilize market sentiment, the price needs to recover and maintain above $2.25, demonstrating buyer strength. If this level is sustained, Pendle could aim for a rally towards the $2.50 range in the near term.
| Indicator | Value | Interpretation |
|---|---|---|
| RSI | 36 | Approaching oversold territory |
| Positive DMI (PDI) | 13 | Strong downward momentum |
| Key Support Level | $2 | Potential breakdown point |
| Target Recovery | $2.25 | Level needed to show buyer strength |
FAQs
Why is Pendle's (PENDLE) price declining and what is the current trend?
Pendle has been in a downtrend for over six months, recently hitting a low of $2.02, and is currently trading around $2.17. Persistent selling pressure, indicated by a negative Buy Sell Delta and declining technical indicators, suggests the downtrend may continue.
What impact did Polychain Capital's sale have on Pendle's price?
Polychain Capital's liquidation of its entire PENDLE position, resulting in a nearly $4 million loss, likely contributed to the downward pressure. This large-scale sell-off can erode investor confidence and signal a shift in investment sentiment.
What are the key price levels to watch for Pendle, and where could it go next?
The key support level to watch is $2; a break below this could lead to a further correction towards $1.80. For Pendle to stabilize, it needs to recover and maintain above $2.25, potentially targeting a rally towards $2.50.
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