Pendle Price Back On Track As Derivative Traders Step In

After many efforts, Pendle (PENDLE) finally has aligned itself with the gainers list amid the broader market recovery. Investor sentiments have been high since the Fed interest rate cut, which has brought a new wave of recovery to the crypto market.

After the Fed rate cut, Bitcoin and several altcoins are rising in the bullish wave. Better late than never, Pendle has joined the list of altcoins riding the recovery wave.

When writing, the Pendle price was exchanging hands close to $4.26. It recorded an impressive 16.4% growth intraday and over 27% a week. This intraday rise marks the end of a three-month correction phase, putting the Pendle price back on track with growth. Let’s analyze the factors contributing to a trend shift and where the price could lead next.

Derivative Traders Triggered a Breakout in Pendle Price

The PENDLE price has noted a strong surge over the daily chart. It has broken out of an interesting pattern in the daily chart. Moreover, the breakout seems to be triggered by the derivatives traders as per the Open interest data provided by Santiment.

A week ago, the number of open contracts was $32.5 Million, which has now surged to $54 Million. This indicated a $22 Million inflow. A 68% addition in the OI data showed that the derivatives traders are playing aggressive bullish bets. It suggested a possible growth in the price ahead.

Moreover, another on-chain metrics price DAA divergence suggested notable change since the past week. The price DAA (Daily Active Address) reflected a shift in divergence between the price and Daily Active Address. Summarizing all, an optimistic yet diverging situation pointed toward further growth in the Pendle price.

Looking over the charts, it was observed that the overall metrics were positive in the recent sessions. Also, a bullish divergence between the price and daily active address was noted, indicating a trend continuation.

Pendle Price Analysis: Is it Poised For 40% Gains In September?

From a price action point of view, Pendle crypto has surpassed the 200-day exponential moving average. This indicated a long-term trend shift on the bullish side. Along with this breakout, the sellers have lost control over the trend and have slipped on the back.

Pendle Price Analysis

From a price action point of view, Pendle crypto has surpassed the 200-day exponential moving average. This indicated a long-term trend shift on the bullish side. Along with this breakout, the sellers have lost control over the trend and have slipped on the back.

The daily chart illustrated a strong breakout from an interesting parallel channel pattern. The PENDLE price has surged over 27.5% a week, flipping the resistance of $3.46 into a support one.

On the higher side, the psychological level of $5 could be the next hurdle for the buyers. If surpassed, it could pave the way for 35 to 40% gains for the investors. The long-term and short-term trends favor bullish continuation.

Moreover, the breakout is supported by a massive 285% rise in transaction volume. The intraday transaction volume recorded was $389.14 Million. The technical indicators RSI and 14-day SMA line implied a trend continuation.

On the contrary, suppose the Pendle price looms below the recent support of $3.46. It may invalidate any bullish scenario and dump the price again.

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