Bittime – PENDLE has experienced a decline since the peak price on April 11. Thereafter PENDLE witnessed a recovery of nearly 20% from its May 1 low of $4.03 Is the PENDLE price correction over, or is there a further decline in store?
PENDLE found a Support Level in Early May?
On May 1, after losing 45% of its value in just over a week, PENDLE found a support level and began to rise. This revival coincided with clarification regarding the controversial airdrop allocation by EigenLayer that affected Pendle users.
Despite the rebound, PENDLE's trading price is still below key resistance levels, both horizontally and diagonally. This raises the question of whether PENDLE can overcome this barrier, or if further declines will occur before a possible reversal.
PENDLE/USDT Daily Chart | Credit: TradingView
New Resistance at $5.50
The most recent increase in PENDLE value reached $5.41 on May 6, confirming the $5.50 level as a strong resistance zone. This level previously served as support before the collapse on April 29.
It is also important to note that PENDLE continues to trade below the descending resistance trendline that has been in place since its all-time high. As a result, market sentiment remains bearish until a breakout occurs.
Despite the rebound, PENDLE has not overcome its resistance level. Additionally, indicators like RSI and MACD remain below the bullish threshold, suggesting caution among traders.
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Technical Analysis Predicts Breakout Potential for PENDLE?
After a 238-day growth period, PENDLE experienced a sharp correction, reaching the 0.5 Fibonacci retracement support level. While this correction is significant, it may only represent the initial phase of a broader corrective pattern. If this is the case, PENDLE could initiate a B wave, potentially pushing it towards the next resistance at $6.75.
PENDLE/USDT Daily Chart | Credit: TradingView
The sub-wave count supports this hypothesis, indicating the completion of the initial decline. The nature of the subsequent recovery appears impulsive, hinting at the possibility of continued growth.
If PENDLE Successfully Breaks $6.75$ Resistance?
If PENDLE achieves a breakout, a rise towards $6.75 seems reasonable, with minor resistance anticipated between $5.75 and $6.17.
However, it is important to recognize that this is likely a temporary rally within a broader correction, indicating that another downward move may follow.
PENDLE/USDT Six-Hour Chart | Credit: TradingView
Controversy Surrounding EigenLayer Airdrop Allocation and Its Impact on PENDLE
Initially causing a 45% drop in PENDLE prices. EigenLayer, a liquid Ethereum restaking protocol with a TVL exceeding $14.80 billion, saw a spike in staked Ethereum following its launch in June 2023. The launch of their native token, EIGEN, sparked debate over its distribution, particularly affecting Pendle, a yield trading protocol and one of the top performers of 2024 .
Is there a sense of injustice that EIGEN stakers feel towards the team and investors?
The EIGEN token, with a total supply of 1,673,646,668, allocated 5% of this supply, or 83 million tokens, in its first season. The ecosystem plans to distribute 15% of the total supply over several seasons. The allocation strategy faced criticism from stakers who felt their share was too small compared to the team and investors.
Additionally, the impossibility of early transfer of tokens and their unavailability in some countries is a point of contention.
Stakedrop on Eigenlayer and Where is PENDLE Position in this regard?
Stakedrop consists of two phases, with the first season allocating 90% of the airdrop to individual users interacting with the EigenLayer protocol and the remaining 10% to those engaging in more complex DeFi contract interactions.
Pendle, which divides its liquid staking into principal and yield tokens, falls into this latter category.
Initial Negative Reactions
Although initial reactions were negative, further examination revealed that allocation concerns were unfounded. The Pendle and Eigen team clarified that allocation is not fixed, but rather reflects overall engagement with the EigenLayer protocol. Two-phase allocation is necessary due to the challenge of identifying users involved in complex DeFi contract interactions.
Calming Clarification for Pendle Price
With this clarification, the initial PENDLE price drop of 45% appears to be an overreaction. Additionally, Pendle's TVL, which is currently $4.20 billion, is not entirely dependent on EigenLayer farming and remains one of the top Ethereum protocols by TVL.
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PENDLE Price Prediction
An examination of PENDLE's daily chart suggests the possibility that the asset is in the early stages of a market correction. If this interpretation is correct, further decline in value may be on the horizon. This is attributed to the fact that the value of the asset rose over a fairly long period, 238 days, while the corrective phase was only felt during the last 21 days.
PENDLE/USDT Daily Chart | Credit: TradingView
This drop could potentially indicate wave 'A' in the classic ABC correction pattern. The asset's value has touched the midpoint of the Fibonacci retracement zone, hinting that the first leg of the correction may have formed.
Further analysis is needed for potential bearish direction or not
Nevertheless, a detailed analysis of recent price movements is essential to confirm this hypothesis. Diving deeper into the price action, it appears that another decline is possible before the completion of wave 'A'. This is inferred from the development of wave 'C', which appears to be forming a five-wave decline.
If the pattern plays out as expected, PENDLE value is expected to rise towards the $5 mark, completing the fourth wave, followed by a decline to $3.15, marking the completion of the initial phase of the correction. Next, wave 'B' will begin.
PENDLE/USDT Six-Hour Chart | Credit: TradingView
Conversely, if the value exceeds the previous low of $5.48, it will indicate that wave 'B' has started. Regardless of the scenario, it seems that PENDLE's correction phase is far from over.
Latest PENDLE to IDR price
According to Bittime Exchange the latest price of PENDEL to IDR is IDR 75,532 and over the last 24 hours it has decreased to -3.03%
PENDLE to IDR via Bittime Exchange
Conclusion
Despite unfounded speculation regarding the EigenLayer airdrop and its distribution among Pendle yield farmers, it is projected that PENDLE's valuation will continue to be affected by a long-term correction, potentially extending into May.
A temporary rally completing wave 'B' is likely within this time.
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How to Buy Pendle (PENDLE) on Bittime
You can buy and sell Pendle (PENDLE) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Pendle (PENDLE) is available on Bittime with the market pair PENDLE/IDR . To be able to buy PENDLE IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Pendle (PENDLE) on Bittime .
Monitor the price chart movements of Pendle (PENDLE), Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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