PENDLE (Pendle), the decentralized choice protocol, has undergone an unfortunate turndown within the last 24 hours. Coin has hit a high of more than $7 over the past few days. It is currently trading at $6.40 which is equivalent to a down slider of 2.82%. It is a sharp turn after a long rally that saw a 30% appreciation on PENDLE’s price over the last two weeks.
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โ Pendle (@pendle_fi) April 24, 2024
No doubt the priori trend left a majority of investors wondering about the existence of further price increases for Pendle.
What Initiated the Plunge?
Besides a few ones, there could not be other causes.
Market Correction: The broader cryptocurrency space as well has experienced a flat trend in the course of the past few days. Bitcoin (BTC) is down by around 1% over the last 24 hours and could trigger intra-day corrective movement of its risky peers like Pendle.
Profit-Taking: Once the ongoing rally has lifted the enthusiasm, there is a possibility that some investors might sell off their stocks, leading to a slowdown or sell-off temporarily.
Trading Volume: The 24-hour trading volume of Pendle also fell by 24.71% along with its diminishing market turnover.ย Being short-term in nature, it could be a symptom of investors’ lack of interest or the market becoming unstable.
Expert’s Opinion
“Sarah Finn – a crypto analyst at Delphi Digital – says that the recent Pendle price decline may be attributable to several different reasons,” she says. “Perspective market correction and the profit taking after a strong rally have their roles in that. However, it is worth remembering that in terms of year-to-date. We are quite significant. Long-term perspective for the project is positive and quite obvious, especially in the period of increasing need of decentralized options protocols.”
Investor Sentiment
“I’m worried about the volatility of the market in the short term,” is the concern raised by Michael Lee, the holder of PENDLE who takes a longer-term view. Nevertheless, I remain confident as the project has great scope in the long term. It is offering a novel solution in the DeFi space, and I think it can become more significant shortly.
How would Pendle recover from this crisis?
Pendle’s price for the future is, however, still subject to change. The next dayโs price shall most likely be dependent on general trends in the market and investor perceptions. Nevertheless, the future of the proposed project becomes highly promising with its advanced technologies and fast-growing DeFi market utilization.
