Pendle (PENDLE) has experienced a significant downturn, reflecting a prolonged period of bearish pressure that is increasingly pushing long-term holders toward capitulation. After facing rejection months ago, the token has traded within a steep downtrend, eventually dropping to a low of $2.02 and currently trading around $2.17.
Institutional Capitulation and Persistent Selling
The recent price action for Pendle has been marked by a notable shift in sentiment among major investors, leading to substantial sell-offs. Polychain Capital, a prominent institutional holder, exited its entire Pendle position after several months of holding. Accumulating roughly 4.114 million PENDLE between March and September at an average price of $3.16 (totaling about $13 million), Polychain later sold its holdings for approximately $2.19, realizing an estimated $3.99 million loss. This significant loss-based exit underscores a weakening conviction under sustained downside pressure. This trend extends beyond a single entity, as CryptoQuant’s data shows persistent "Big Whale Orders" for nearly 30 consecutive days, primarily signaling distribution. Furthermore, Coinalyze data indicates a negative Buy Sell Delta for nine straight days, confirming that sell orders consistently outpace buy orders on the spot market, reinforcing bearish dominance.
Precarious Price Action and Critical Support Levels
Pendle's broader downtrend remains firmly in place, with technical indicators reinforcing the strong bearish momentum. The Relative Strength Index (RSI) has fallen to 36, placing the token near oversold territory, while the Directional Movement Index (DMI) shows the Positive Directional Index sliding to 13. This alignment typically favors a continuation of the prevailing trend, suggesting further downside is possible. The critical support level for Pendle now stands at $2. Should selling pressure persist and this level fail to hold, the price could open the door towards the $1.80 zone. For any signs of sentiment stabilization and a potential recovery attempt, Pendle would need to reclaim the $2.25 mark, signaling renewed buyer defense, with a sustained hold potentially paving the way towards $2.50.
