Pendle (PENDLE) faces resistance after 43% price surge
- Pendle (PENDLE) has seen a price increase of 43% over the last 30 days.
- The price reached a new monthly high of 5.13 USD but faced resistance at the 5 USD mark.
- Technical indicators suggest a potential price correction, though the upward trend remains intact.
- Whales have started reducing their holdings, which could signal an upcoming consolidation.
Strong Rise, but Resistance at 5 USD
Pendle (PENDLE) has experienced an impressive 43% price increase over the last 30 days, reaching a new monthly high of 5.13 USD. However, the psychologically significant 5 USD mark has proven to be a stubborn resistance level. Historically, this price point has been a key area where many traders have taken profits.
Currently, the price appears to be stalling at this threshold. A red daily candlestick chart suggests that some traders have begun to sell their positions. Short-term investors may be tempted to realize their gains, which could further increase selling pressure.
Technical Indicators Point to Overbought Conditions
A look at the technical indicators shows that Pendle is currently in an overbought state. This suggests that a correction could be possible in the coming days. Despite these warning signs, the overall market trend remains positive, as the price continues to form higher highs and higher lows – a classic sign of an upward trend.
For traders, there are two possible scenarios to profit from this trend. First, a re-entry at a pullback to the short-term support level of around 4 USD and the 50-day EMA (Exponential Moving Average) could be a smart move. This could offer a target of 5 USD, representing a potential 23% gain, assuming the price drops to 4 USD.
The second scenario would be a breakout above the 5 USD mark, which could then act as support. In this case, bulls could aim for a target of 6 USD, which would represent an 18% gain.
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Whales Reducing Their Holdings
Although the upward trend remains strong, there are signs that some large investors, known as whales, have started to slightly reduce their positions. Historically, the price tends to decline when whales reduce their holdings.
Data from Santiment shows that the share of PENDLE held by whales has slightly decreased. However, at the same time, the amount of PENDLE held outside of exchanges has increased, which could indicate accumulation by smaller investors. This development alone, however, may not be enough to push the price higher if whales continue to reduce their holdings.
Possible Scenarios for the Coming Days
If whales continue to reduce their positions, this could lead to a decline in Pendle’s price. A pullback from the resistance at 5 USD could make the first scenario of a re-entry at 4 USD more realistic. However, if the price falls below the 50-day EMA, the upward trend could be at risk.
Our Assessment
Pendle has shown impressive performance in recent weeks, but the resistance at 5 USD could pose a short-term hurdle. For traders betting on further gains, two potential scenarios present themselves: a pullback to 4 USD or a breakout above 5 USD. However, the reduction in holdings by whales could be a warning sign that consolidation is on the horizon. It remains to be seen whether smaller investors have enough buying power to push the price higher.
Sources:
– Santiment
– Hyblock
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