Pendle’s price dropped 36.6% in early July, going below key support levels. The market was very unstable because of a significant sale by a “whale,” but the support trendline around $3.5 points to a possible rebound.
The market for cryptocurrencies has been showing a stabilization trend since last weekend. This is because digital assets are trying to get back to normal after the recent sell-off. Even though prices were staying the same, the market’s mood got slightly better on Monday when Bitcoin jumped 4% to $58,200.
The altcoin market is taking advantage of less supply pressure to set a local bottom. The Pendle price is moving noticeably and is looking for support at a trendline that has been going up for several months so that it can possibly go up again.
Pendle’s Significant Price Drop
Price drops in Pendle coin continued in the first week of July, when it dropped from $5 to $3.2, a 36.6% drop. The altcoin lost several important economic support levels during this drop, such as the 23.6% Fibonacci retracement, the 200-day EMA, and the $3.8 mark.
This was made worse by a large whale sell-off. But sellers couldn’t keep the price from falling, and at the support trendline around $3.5, Pendle’s price came under new buying pressure.A recent on-chain study by Lookonchain showed that PENDLE tokens were moving around a lot.
A “whale” sent 1.1 million PENDLE, which is worth about $3.8 million, to Binance earlier today, probably to sell. The whale now has 1 million PENDLE, which is worth about $3.5 million. Lookonchain’s research also shows that between February 9 and April 27, 2023, this whale bought 3.44 million PENDLE on both centralized and decentralized markets for an average price of just $0.32 each.
The recent drop in price could mean that smart money traders are trying to get out of Pendle or take their gains because they don’t think the price will go up much. Even so, the support trendline, which has been in place since October 2023, keeps Pendle’s higher low formation safe, which shows that buyers are actively building up positions.
