PENDLE holders are the happiest ones this weekend after the token surged over 25%. The PENDLE price is now hovering around $4.33, with volume exploding over 200%, reaching more than $350 million in the last 24 hours.
Hayes’ Sell-Off: A Surprising Catalyst
Interestingly, the positive price action follows what could be considered negative news. Arthur Hayes tweeted about reducing his PENDLE position. He stated that Maelstrom Fund is cutting back its PENDLE holdings, although it remains one of their largest positions. "As you can see, Maelstrom Fund is reducing its PENDLE position. Even after the reduction, it is still one of our largest positions. We still fully believe that PENDLE will be the leader in crypto interest rate derivatives. And we plan to profit from their success." — Arthur Hayes (@CryptoHayes), September 21, 2024. In real numbers, Hayes sold 61% of his PENDLE position, equivalent to over $4.4 million.
PENDLE Price Analysis
Following this price pump, analyst DeFiDOG shared a viral PENDLE chart on Twitter. The PENDLE chart reveals several interesting insights: - A descending trendline, previously indicating bearish pressure, has been broken. This breakout signals a potential trend reversal. - The current price of around $4.3 appears to be a crucial short-term support level. - Immediate resistance is set at $7.54, representing a previous high. This level could be a key profit-taking point for traders. - Volume indicators show increased activity, suggesting growing buyer interest. The buy-to-sell ratio confirms that buyers currently dominate the market. If the bullish breakout holds, the next significant price target could be around $7.54. Should this level be cleared, further upside might target levels above $8.00. However, if the $4.24 support fails to hold, a pullback could bring the price down to $3.38.
Conclusion
The break of the descending trendline suggests a potential reversal of the previous bearish trend, possibly signaling the start of a new bullish cycle. As buyers step in, the price may test higher resistance levels.
Despite Arthur Hayes' significant sale of PENDLE assets, the token's price continues to rise, indicating strong buying interest and positive market sentiment. Future price movements will depend on sustained buyer activity and the holding of key support levels.
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