Arthur Hayes scooped 218,000 PENDLE tokens today. This accumulation occurs as the altcoin approaches reliable support, suggesting a recovery. Pen dollar prices rose more than 2% the previous day.
The crypto sector remains in the doldrums, unable to regain the $3 trillion level as a short-term rally faces renewed selling pressure.
However, sentiment is likely to change as spot-buying activity comes to light.
Market participants track large trades because they can indicate potential changes in sentiment.
Pendle is in the spotlight on November 26th after a major purchase by Arthur Hayes.
According to Arcam data, the BitMEX co-founder executed two trades in the past 24 hours.
The first included 105,000 PENDLE tokens worth over $258,000.
Meanwhile, in a second purchase a few hours later, Hayes bought 113,000 coins for $277,000.
To date, Mr. Hayes has accumulated 118,000 coins worth a total of approximately $536,000 and currently holds PENDLE worth over 1.19 million, or over 417,000 tokens.
Meanwhile, today’s trade attracted attention due to its good timing, coming as the Pen dollar endures a bear market.
Amid the widespread recession, the digital token has lost more than 25% of its value in the past 30 days.
Significant accumulation during a bearish phase of performance indicates confidence in the possibility of recovery.
Mr. Hayes likely took advantage of the price downside and bought at a discount before Pendle changed its trajectory.
Pen dollar price outlook – impending rebound
The altcoin is trading at $2.53, up over 2% in the past 24 hours.
Meanwhile, Pendle has been under heavy selling pressure recently.
Its price started to stabilize at $2.10 to $2.25 after a poor performance in October and November.
This region is very important as it previously provided the perfect entry level for buyers.
That’s why Haze’s latest accumulation has garnered so much attention.
These sentiments suggest a potential short-term recovery for Pendle.
On the other hand, the first hurdle at $2.75 will be the first barrier to continued upside.
If the breakout is confirmed, it could pave the way to $3.16 to $3.55, before surging to $4.67 amid a broad-based rally.
Momentum indicators support optimistic performance.
The convergence of the 4-hour moving average highlights the presence of buyers.
Additionally, the Relative Strength Index of 62 indicates upward momentum with no imminent overbought conditions.
Nevertheless, the cryptocurrency market is very unpredictable these days, and short-term recoveries can sometimes be met with sudden declines.
Bearish price action could see the altcoin revisiting the $2.10 to $2.25 support barrier.
Failure to sustain above this mark will trigger a significant decline in the token.
PENDLE could plummet to $1.80 or even $1.60.
Meanwhile, broader sentiment will impact Pendle’s near-term results.
The overall cryptocurrency market is still deteriorating. Bitcoin is trading at $86,000, but there are fears it could fall further to $79,000.
Such a move would mean a significant decline in the overall market, potentially delaying Pendle’s near-term recovery.
