The PENDLE token caught the attention of investors with its aggressive appreciation, despite the strong market correction. According to CoinGecko, the token rose almost 30% this Friday (5), recording one of the biggest increases of the day.
However, PENDLE has been receiving a heavy inflow of money since the fourth week of March when the price reversed from the $2.30 support to rally 190%. With this, the token’s price reached its new all-time high at US$6.63.
Much of this increase was lost throughout the morning and soon PENDLE fell back below US$6.00. Given this movement, is it worth betting on further increases in the token in April?
Will PENDLE have the strength to beat the market?
The Pendle network is a protocol that operates on the Ethereum blockchain, designed for the decentralized finance (DeFi) market. Its objective is to offer a platform for income trading.
Defying most major cryptocurrencies that entered a new correction trend in mid-March, PENDLE price emerged with a dynamic rally.
Furthermore, the Total Allocated Value (TVL) of the Pendle network grew exponentially, going from US$ 233 million at the beginning of the year to almost US$ 4 billion this Friday (5).
This significant growth reflects an expanding user base and could imply greater adoption of its yield tokenization services, which could increase the liquidity and utility of the Pendle ecosystem.
However, with today’s market sell-off, Pendle’s price has fallen by 7%, currently trading at $5.8, while the market cap is $1.371 billion. However, such highly dynamic recoveries are unlikely to continue unless supported by some external news.
Thus, if PENDLE price formed a local top at $6.67, the early correction may witness demand pressure at the $5.62 and $5.00 levels, which coincides with the Fibonacci retracement level of 38.2% and 50%.
If it misses these levels, PENDLE could fall below $4.50, following the 50% Fibonacci level.
Source: https://www.criptofacil.com/pendle-valorizacao-subita-de-token-e-sustentavel-no-medio-prazo/
