PENDLE emerges as hot ETH beta play: Is a new all-time high next?

Pendle (PENDLE) reached highs of $6.49 on Wednesday before a slight retreat pushed prices to $5.86. Bulls are nonetheless looking to retake control with price currently at $6.04, down 2% in the past 24 hours but 46% up in the past week.

Is the latest bounce enough to return PENDLE price to its all-time high and open up price discovery?

Ethereum’s price surge and ETF talk fuels trader optimism

As Ethereum price soared on Tuesday, multiple tokens within its ecosystem followed suit to post impressive gains.

In the 24 hours that followed news of SEC’s potential approval of spot Ether ETFs, Lido DAO, Arbitrum and memecoin Pepe rose sharply.

PENDLE’s unique proposition is its yield trading platform. The protocol allows for yield tokenization, with users able to leverage its offering to target huge yields from coins such as ETH and stablecoins. 

It’s the reason some traders see Pendle as the hottest ETH beta play in the wake of fresh ETF approval sentiment. 

Investors are thus looking at the scenario that a spike in ETH price will catapult related coins. This outlook has a few tokens emerge as top targets for buying. Crypto trader and analyst Nick Ford observed;

The best ETH beta play continues to be $PENDLE

Pendle V3 getting closer
TVL Reaches new ATH $5.7B+
Trading Volume crossed $17B+
Continues to expand pools, $sUSDE to $250M pic.twitter.com/RsH1jvzR9g

— Nick Ford (@CryptoWithNick) May 21, 2024

Pendle holders mostly “in the money”

Given the bullish sentiment surrounding Ether price amid ETF approval speculation, its likely Pendle could emerge as a top ETH beta play.

In this case, today’s slight decrease as Ethereum and Bitcoin hovered around $70,000 and $3,700 respectively could provide for a potential bounce towards April’s peak of $7.50.

This outlook could include a dip amid profit deals. Data from IntoTheBlock shows nearly all PENDLE addresses are profitable, with 80% currently “in the money.” Meanwhile, 20% are currently “at the money”.

PENDLE price is currently at $6.04 and a surge could see more holders become profitable. According to data from DeFiLlama, Pendle TVL has also reached a new all-time high of $5.78 billion.

Pendle price outlook

Data from Coinglass shows Open Interest (OI) in Pendle at $112 million,. The metric has however dipped 12% as prices retreated following the surge to a multi-week high.

So, while PENDLE token could ride new momentum to extend gains above the descending channel printed on the 4-hour chart, a slight pullback is likely.

The RSI and MACD indicators suggest bulls might have to hold above the key horizontal line at $5.79. Managing this may stem bears’ moves aimed at revisiting primary support levels, likely in the $4.00-$3.80 region.

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