Pendle’s [PENDLE] supply pressure was renewed when a whale transferred all of its tokens, valued at $1.28 million, to Binance without staking them.
The whale’s Binance deposit immediately sparked distribution concerns since transfers to exchanges usually create more available selling pressure.
Before depositing, the whale had withdrawn roughly $1.338 million worth of PENDLE from Bybit across six months. The whale also had over $80,000 in profits while still holding a 5x leveraged short position at an open price of $1.52.
However, PENDLE rallied 12.47% at press time, and trading volume grew 121.41% to some $53.13 million. Therefore, demand had absorbed the initial supply threat without derailing the recovery.
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Three-day outflow streak tightens available supply
Broader exchange flows offered buyers another advantage despite the whale’s isolated Binance transfer. PENDLE had recorded three days of negative Spot Netflows, keeping its streak of consistent withdrawals going.
The most recent reading stood at -$150.61K, indicating that withdrawals were larger than deposits on all tracked spot exchanges. Importantly, the three-day pattern suggested broader holders had not followed the whale toward exchanges during PENDLE’s recovery.
Rather, aggregate flows kept moving tokens away from trading venues, and buyers controlled the spot market as supported by the Spot Taker CVD indicator. Therefore, the whale’s potential supply faced a market environment with declining exchange balances from recent flows.
Continued outflows would likely strengthen that narrative, particularly as aggressive spot buying remained dominant. However, a reversal toward sustained inflows could weaken the current demand advantage.
Rising Open Interest adds fuel and risk
PENDLE also saw derivative traders build up their positions, further adding to the emerging demand situation.
At the time of writing, the Open Interest (OI) rose 8.46% to $57.11 million, reflecting new leveraged interest in the price rise.
The rise was significant because traders were buying rather than selling during the PENDLE. But that didn’t determine whether the new positions were preference longs or shorts.
The whale’s existing 5x short highlighted the bearish side of that leveraged expansion. However, PENDLE’s price advance suggested that the sellers did not have enough control to derail the recovery. Meanwhile, the rising OI may lead to more volatility as the price nears an important technical resistance area.
Strong spot demand could pressure bearish positions should PENDLE continue advancing. However, if buyers are weakened, then the market may see more severe declines as the leveraged exposure unwinds.
PENDLE’s price keeps KEY resistance within reach
PENDLE’s technical structure shows an improvement since the price broke out from the descending channel and bounced from the $1.245 support zone. The breakout halted the downtrend that held price action since July’s local top.
The price then rallied to about $1.49, bringing the $1.574 resistance right into the recovery. Instead of getting stuck in a downtrend resistance zone, buyers have decisively moved PENDLE out of the channel’s upper boundary.
The MACD indicator also improved following the breakout, as the histogram shifted from negative to positive at 0.017 as of writing. The MACD line was at about -0.016 and above the signal line at -0.033.
Therefore, the suggested bullish momentum is still intact. Breaking above $1.574 could provide a chance to move towards major resistance at the $2.00 level.
However, a failure at $1.574 may lead to consolidation, while $1.245 would be the key structural support level.
Final Summary
- PENDLE buyers absorbed whales’ pressure as spot outflows supported reduced exchange supply.
- Clearing $1.574 could strengthen PENDLE’s recovery despite rising leveraged market exposure.
