On Friday, June 20th, the crypto market experienced a sudden sell-off, evidenced by Bitcoin’s sharp reversal from $106,520 to $102,700. The escalating geopolitical tension in the Middle East has been a primary catalyst for the bearish downtrend in the majority of major cryptocurrencies in June. Despite the mounting selling pressure, the Pendle coin price shows potential for bullish recovery amid bullish chart patterns and whale/institutional accumulation. Is Pendle’s $5 rally near?
Institutional Wallet Accumulates Over 2.18M PENDLE
In the last two weeks, the Pendle price shows a notable downturn from $4.5 to $3.63, registering a loss of 20%. The escalating military action between Iran and Israel has been the major catalyst behind this sell-off, now intensified as the United States is rumored to join this conflict.
While the broader market hints at a continued downtrend, the Pendle coin has witnessed a major accumulation from institutional investors. According to blockchain tracker Spotonchain, a crypto wallet, 0xaA3, likely linked to investment firm Arca, withdrew 1.349 million PENDLE (worth approximately $5.38M) from the Binance exchange early today.
Over the past six days, the same wallet has accumulated 2.183M PENDLE (worth roughly $8.31M) at an average price of $3.81. At the time of reporting, the wallet is holding an unrealized profit of approximately $100,000.
Typically, such an accumulation trend from whales and institutions could bolster market sentiment and drive upward pressure for the asset.
Daily Chart Hints Major Reversal Within Flag Formation
An analysis of Pendle’s current correction trend shows its price has been actively resonating within two converging, two downsloping trends. Following a notable recovery from mid-March to late May, this short pullback signals the formation of a bullish continuation pattern called a ‘flag.’
The chart setup is commonly spotted in an established recovery trend, providing buyers the necessary break to regain bullish momentum.
However, with today’s price drop, the Pendle coin is likely to breach the trend-defining exponential moving averages of 100 and 200, reinforcing the current bearish momentum. The post-breakdown fall could plunge the price another 20% to hit the flag support at $3.3.
If the buyers manage to regain bullish momentum at the bottom trend line, the coin price could re-challenge the flag resistance for a bullish breakout.
If successful, the coin price could surpass the $5 psychological level and reach a high of $650.
Also Read: Ethereum Eyes $3.5K Rally, Network Growth Outshines Fears
