The overextended rally of the Pendle price is likely to undergo an occasional pullback to showcase its sustainability for a higher rally and replenish exhausted recovery.
STORY HIGHLIGHTS
The momentum indicators at the overbought region hint the Pendle price may need a minor pullback to recuperate buyers' strength.
The post-rally correction may seek suitable support at $5.62 and $5 horizontal levels.
The intraday trading volume in Pendle is $417 Million, indicating a 302% gain.
Pendle, a decentralized finance (DeFi) protocol, caught the attention of crypto investors with its aggressive recovery despite the broader market correction. The altcoin witnessed an intense inflow in March’s fourth week as the price reverted from $2.3 support to rally 190% and reached a new all-time high of $6.63. As the correction trend extends for major altcoins, will Pendle maintain its bullish momentum?
Will Pendle Price Loss $5 Support Amid Market Correction?
Pendle is a protocol that operates on the Ethereum blockchain, designed to innovate in the decentralized finance (DeFi) space by offering a platform for yield trading. Defying the majority of major cryptocurrencies which entered a new correction trend in mid-March, the Pendle price emerged with a high momentum rally.
This recovery can be attributed to several factors, one being the explosive growth in its Total Value Locked (TVL). Data from DeFiLlama indicates that the TVL for Pendle has experienced a remarkable increase, rising from $233 million at the start of the year to an impressive nearly $4 billion by April.
This significant growth reflects an expanding user base and could imply increased adoption of its yield tokenization services, which may enhance the liquidity and utility of the Pendle ecosystem.
However, with today’s market sell-off, the Pendle price plunged 7% to currently trade at $5.8 while the market cap stands at $1.371 Billion. However, such high-momentum rallies are unlikely to continue unless supported by some external news.
Thus, if the Pendle price has formed a local top at $6.67, the anticipated correction may witness demand pressure at $5.62 and $5 levels which coincides with 38.2% and 50% Fibonacci retracement level.
Assessing Pendle’s Technical Indicators
Average Directional Index: The daily ADX slope at 40% reflects the buyers are leading an over-exhausted rally which needs a minor pullback to regain strength.
Exponential Moving Average: The fast-moving 20-day EMA will offer suitable support for buyers amid market pullbacks.