Key Takeaways
After reaching its all-time high above $7 on April 11, the price of Pendle has been in a downtrend. On May 15, it fell below $4, marking a 48% decrease. After that, it reversed, leading to a price increase of nearly 40%, which came up to $5.40, which is today’s (May 20 2024) high.
This was a breakout above its descending channel from the all-time high, posing a question. Has a new bull phase started with the potential to advance to a new all-time high above $7.50?
Regarding investors’ profitability , almost all are “in the money.” Only 8.73% are either at the break even point or unprofitable at the current price of $5.31.
This onesidedness usually indicates that investors’ sentiment is at the extreme specter and could lead to price reversals.
Looking at the large transactions that indicate whale activity, a downtrend can be seen from its price peak of 229 txs.
However, since May 6, we can see an uptick from a low of 118 txs to a high of 131 today. This, therefore, suggests that whales have been stepping in and scooping up the token, causing this nearly 40% price spike.
Liquidation data from CoinGlass shows an increase in liquidated short positions but nothing out of the ordinary. A total of $178,000 was liquidated on May 20, the most since April 30. However, this is significantly lower than it was around its all-time high. Looking at this and cross-referencing other data, we can conclude that fundamental demand is driving the PENDLE price rise.
As we said earlier, PENDLE broke out above its descending channel on May 17 and is now showing a five-wave pattern. This pattern usually indicates a starting uptrend.
The price is now developing its ending wave, and a downturn should happen next. Our next target will be $5.70, while afterward we could see a 0.618 Fibonacci retracement to $4.40.
If this happens, it would mean that PENDLE made both its first higher low as well as its first two sub-waves of the higher degree five-wave move to the upside. According to this scenario, it could potentially exceed its prior all-time high and be eyeing values above $11 for its completion.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.