Pendle Price Sees Major Reversal Amid Institutional Buying Spree

The Pendle price prolonged its consolidation from last as the broader market witnessed a surge in supply pressure after Bitcoin reverted from $70000 on Monday—the renewed selling pressure in pressing the Pendle coin against multi-month support with potential for bearish breakdown. However, recent accumulations from prominent institutions signal a potential for reversal.

Also Read: Bank of Japan Rate Hike Leads to Bitcoin Volatility, All Eyes on US Fed Meeting

PENDLE Price Decline Meets Institutional Interest

Recent on-chain activity revealed that institutions have been actively withdrawing PENDLE tokens from Binance. Notably, DWF Labs pulled out 117,563 PENDLE, valued at approximately $424,000, within the last three hours before this report.

The on-chain data tracker Spotonchain highlighted that this move is part of a broader trend observed over the past six days. Two key institutions, including HashKey, have removed significant amounts of PENDLE from Binance. Despite the falling price, this series of withdrawals by these entities sparks a potential for a bullish reversal.

DWF Labs (@DWFLabs) just withdrew 117,563 $PENDLE ($424K) from #Binance ~12 minutes ago.

Note that in the past 6 days, two smart institutions, including HashKey and DWF Labs, have withdrawn $PENDLE from Binance.

Follow @spotonchain for more updates about #DWFLabs and $PENDLE.… pic.twitter.com/uEd7aDBbrC

— Spot On Chain (@spotonchain) July 31, 2024

 

Also Read: Mt. Gox Transfers 45,511 Bitcoins to Repay Creditors, BTC Selloff Looms

Pendle Price Stands at a Critical Juncture

Over the past two months, the Pendle price has undergone a significant correction, marked by a stark decline from its May 25th peak of $7.25, plummeting by 50% to $3.62, while its market cap fell to $570 million. 

This altcoin has struggled against an overhead trendline serving as dynamic resistance, failing to capitalize on the market’s recovery in July. However, the Average Directional Index (ADX) indicator dropped to 19% this week, signals the weakening of the current bearish momentum.

Analysis of the daily chart indicates that Pendle has been finding support along an ascending trendline established since December 2023. Historically, this trendline has triggered renewed buying interest and could trigger a 24% price rebound to challenge the key overhead resistance. 

A breakout above this downsloping trendline could reinvigorate Pendle’s recovery efforts, potentially driving prices towards targets of $6.28 and then $7.28.

Conversely, Pendle is now teetering near critical support, with a recent bearish crossover between the 20-and-200-day Exponential Moving Averages (EMAs) threatening to intensify the selling pressure. Should this support break, it would negate any bullish predictions, possibly pushing the price down to $2.3.

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