PENDLE holders are the happiest ones this weekend after the token pumped over 25% today.
The PENDLE price is now hovering around $4.33. Volume also exploded over 200%, reaching more than $350 million in the last 24 hours. These are some impressive numbers indeed. But what’s driving the surge?
What you'll learn 👉
Hayes’ Sell-Off: A Surprising Catalyst For PENDLE Price Pump?
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.
Hayes explained that their continued belief in PENDLE’s potential to lead the crypto interest rate derivatives market and their intention to profit from its success.
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 or bullish breakout. The current price of around $4.3 appears to be a crucial short-term support level. If it holds, it could provide a foundation for further upward movement.
The immediate resistance is set at $7.54, representing a previous high. This level could be a key profit-taking point for traders if the rally continues. The price recently surged by 18.78%, indicating strong bullish momentum. This, coupled with the trendline breakout, suggests potential for more upward movement, especially if the price remains above the $4.24 mark.
Volume indicators show increased activity, suggesting growing buyer interest. The buy-to-sell ratio reveals significantly more buy volume ($693k) compared to sell volume ($282k), confirming that buyers currently dominate the market.
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Show more +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.
Read also: Here’s Why AAVE Price is Rising: Key Levels and Channel Up Pattern Explained
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.
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