Arthur Hayes Locks 1.65 million Pendle — Is PENDLE Making An Upturn?
Pendle is in a downtrend since May 25, but with major whale moves seen on-chain, a bullish turn could be made soon.
Key Takeaways
- PENDLE has lost 30% since May 25.
- Arthur Hayes locked up 1.65 million PENDLE.
- The liquid staking derivatives finance sector grew by 53%.
The price of Pendle (PENDLE), the native token of Pendle Finance, has been in a downtrend since May 25, losing 30% of its value. The price currently hovers around $5.13 on major exchanges, reflecting broader market downturns, including Bitcoin’s drop below $68,000.
However, there are some hints that there may be a bullish turn. Arthur Hayes has recently locked up 1.65 million PENDLE tokens until September 2024, signaling possible confidence in the token’s future, according to Lookonchain.
This action aligns with his positive views on the liquid staking derivatives finance (LSDfi) sector, which has seen a significant 53% increase in the total value locked (TVL) over the last month, reaching over $6.52 billion.
While PENDLE’s price is at levels last seen in early May, its future trajectory could depend on whether it maintains above the $5.00 mark, which could favor bulls, or falls below, potentially empowering bears.
PENDLE Price Analysis
The price of PENDLE broke out from its descending channel on May 17, signaling the start of an uptrend with the emergence of a five-wave pattern. Per our previous projection, as it ended a five-wave pattern, its following downturn was expected to bring the price down to some of the significant Fibonacci levels.
If the decline is over or near completion, it would establish PENDLE‘s first higher low and the initial two sub-waves of a more significant five-wave upward trajectory. In this scenario, PENDLE could potentially surpass its previous all-time high, targeting values above $11 upon completion of the cycle. However, looking at the price chart, there are still no bullish signals. The price is still in a downtrend, with no green candles.
The daily chart Relative Strength Index is at 40%, slightly below its median point, but a similar value was seen on March 19, when PENDLE made a higher low. Should the downfall continue, a delay in this bullish projection might occur, or even invalidation, as the May 25 high of $7.30 is lower compared to April 11 of $7.50.
We could have seen a double top, indicating that PENDLE didn’t have the strength to proceed with its uptrend past the $7.50 resistance.
Zooming into the hourly chart and adjusting the Fibonacci retracement to the $7.30 high, we can see that PENDLE formed a descending triangle to the 0.618 Fib on its downturn. This is a typical stopping point for corrective waves, and the triangle appears to have been formed in a three-wave manner.
If this is a corrective pattern, a breakout to the upside could propel PENDLE into its next major uptrend.
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