Ad

PENDLE price bounces at key support as TVL reaches new high

By:
on May 22, 2024
Updated: May 23, 2024
Listen
  • Pendle traded around $6.04 at the time of writing, slightly in the red but still bullish.
  • PENDLE price recently broke above a downtrend channel and is 46% up in the past week.
  • Ethereum ETF news and traders’ search for best beta plays could catalyse Pendle price.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Pendle (PENDLE) reached highs of $6.49 on Wednesday before a slight retreat pushed prices to $5.86. Bulls are nonetheless looking to retake control with price currently at $6.04, down 2% in the past 24 hours but 46% up in the past week.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Is the latest bounce enough to return PENDLE price to its all-time high and open up price discovery?

Ethereum’s price surge and ETF talk fuels trader optimism

Copy link to section

As Ethereum price soared on Tuesday, multiple tokens within its ecosystem followed suit to post impressive gains.

In the 24 hours that followed news of SEC’s potential approval of spot Ether ETFs, Lido DAO, Arbitrum and memecoin Pepe rose sharply.

PENDLE’s unique proposition is its yield trading platform. The protocol allows for yield tokenization, with users able to leverage its offering to target huge yields from coins such as ETH and stablecoins.

It’s the reason some traders see Pendle as the hottest ETH beta play in the wake of fresh ETF approval sentiment.

Investors are thus looking at the scenario that a spike in ETH price will catapult related coins. This outlook has a few tokens emerge as top targets for buying. Crypto trader and analyst Nick Ford observed;

Pendle holders mostly “in the money”

Copy link to section

Given the bullish sentiment surrounding Ethereum price amid ETF approval speculation, its likely Pendle could emerge as a top ETH beta play.

In this case, today’s slight decrease as Ethereum and Bitcoin hovered around $70,000 and $3,700 respectively could provide for a potential bounce towards April’s peak of $7.50.

This outlook could include a dip amid profit deals. Data from IntoTheBlock shows nearly all PENDLE addresses are profitable, with 80% currently “in the money.” Meanwhile, 20% are currently “at the money”.

PENDLE price is currently at $6.04 and a surge could see more holders become profitable. According to data from DeFiLlama, Pendle TVL has also reached a new all-time high of $5.78 billion.

Pendle price outlook

Copy link to section

Data from Coinglass shows Open Interest (OI) in Pendle at $112 million,. The metric has however dipped 12% as prices retreated following the surge to a multi-week high.

So, while the PENDLE token could ride new momentum to extend gains above the descending channel printed on the 4-hour chart, a slight pullback is likely.

 The RSI and MACD indicators suggest bulls might have to hold above the key horizontal line at $5.79. Managing this may stem bears’ moves aimed at revisiting primary support levels, likely in the $4.00-$3.80 region.

Ethereum Altcoins Crypto