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Pendle Price Up Nearly 40% In Five Days — Is Rise Over Or Just Starting?

Last Updated May 20, 2024 1:37 PM
Nikola Lazic
Last Updated May 20, 2024 1:37 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Pendle’s recent price spike was driven by whale activity.
  • A breakout suggests the start of a potential new bull phase.
  • The current sentiment is extreme and a reversal is possible.

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? 

Pendle Fundamentals 

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. 

Pendle
In/Out of Money | Source: IntoTheBlock

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. 

Pendle on-chain data
Large Transaction | Source: IntoTheBlock

 

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. 

Pendle on-chain
Liqudation data | Source: CoinGlass

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.

PENDLE Price Analysis 

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. 

4-hour chart
PENDLEUSDT | Credit: Nikola Lazic/Tradingview

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. 

Disclaimers

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.

 

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