After a significant downturn, Pendle (PENDLE) is exhibiting compelling signs of a potential bullish reversal. Following a prolonged period of decline, recent on-chain metrics and market activity suggest a shift in sentiment, attracting considerable interest from large investors and signaling renewed confidence in the asset's future.
Growing Investor Conviction and Whale Accumulation
A powerful indicator of PENDLE's potential turnaround comes from a newly identified crypto whale, which aggressively accumulated 1.5 million PENDLE tokens, valued at approximately $2.82 million, from Binance. This substantial withdrawal from an exchange and subsequent time-lock until January 2028 signals strong, long-term conviction in the asset's appreciation. Further reinforcing this optimistic outlook, PENDLE staking has seen a remarkable surge, with over 11 million tokens locked in the past week. This increasing trend of investors choosing to stake rather than sell demonstrates a collective belief in PENDLE's long-term value, effectively reducing immediate selling pressure in the market.
Price Action and Technical Reversal Signals
At present, PENDLE is showing a steady recovery, climbing nearly 5% within 24 hours, supported by a 13% jump in trading volume. This confluence of rising price and volume indicates growing market participation and interest. Historically, PENDLE has demonstrated a pattern of strong reversals, particularly when its price touches the lower boundary of a parallel channel around $1.70 – a level it has visited multiple times since January 2024, consistently leading to significant rallies, some exceeding 200%. Should PENDLE maintain its position above the critical $1.70 support, it could target an initial 22% increase to $2.38, with a break above $2.40 potentially extending gains by another 17% towards $2.81. Derivatives data further corroborates this bullish lean, with a notable imbalance in leveraged positions favoring long bets, suggesting traders anticipate an upward movement. However, failure to hold the $1.70 support could invalidate this bullish thesis and expose PENDLE to further downside.
