Pendle (PENDLE) traded under pressure throughout the session and lost more than 10% of its value at press time despite a notable increase in market participation. However, trading volume increased by around 20% to $36.9 million, showing that traders remained very active during the decline.
Increased volume during a selloff often reflects stronger conviction on the part of market participants, and this trend showed up in PENDLE’s latest move. Rather than attracting subsequent buying, the increase in activity was accompanied by sustained downward pressure.
As a result, sellers maintained control over price action even as liquidity entered the market.
Why PENDLE buyers remained active despite weakness
Spot market data revealed a different story behind the decline. At the time of writing, CVD of the spot taker remained firmly positive and continued its upward trend even as PENDLE fell. This divergence suggests that aggressive buyers continued to enter the market through market orders.
However, their activity did not translate into immediate price appreciation. Instead, sellers appeared to absorb incoming demand and prevented buyers from regaining control. This imbalance highlighted a market where participation remained healthy but directional convictions remained divided.
Even though the aggressiveness of buyers persisted, the dominant supply on the market limited the upward progression. If this divergence persists, traders could start watching for signs that demand will eventually overcome the remaining selling pressure.
Can PENDLE hold $1.16 as MACD weakens?
PENDLE remained stuck in a well-defined range after its recent decline and continued to trade just above the key $1.16 support zone. Buyers defended this area repeatedly, avoiding a deeper breakout despite persistent selling pressure.
However, each rebound attempt lost strength before reaching the upper limit near $1.40, leaving the asset compressed inside the range. The chart also shows that a lower-high structure is developing, reflecting muted bullish conviction.
Meanwhile, at press time, the MACD histogram remained negative and the MACD line continued to drift below the signal line, confirming that bearish pressure had persisted throughout the latest move. If the bulls continue to defend $1.16, PENDLE could revisit resistance around $1.40.
However, a loss of this support level could expose the asset to a greater decline as sellers regain stronger control.
Why is the $1.40 to $1.50 area important?
The liquidation heatmap showed a clear concentration of leveraged positions above the current market price. The largest pockets of liquidity have clustered between $1.40 and $1.50, creating an area that could attract prices if buyers regain strength.
Markets often gravitate toward highly populated liquidation zones because they contain significant amounts of leveraged exposure. On the other hand, liquidity below current levels appears considerably weaker. This imbalance has focused more attention on the overhead region rather than lower targets.
If PENDLE recovers from support, traders could focus on the $1.40 to $1.50 range as a potential destination. In the meantime, these liquidity clusters remain an important reference point for market participants in the short term.
Final summary
- Buyers remained active, but sellers continued to absorb demand across the market.
- Defense of $1.15 remains crucial before any move towards higher liquidity zones.
