Arthur Hayes bought $536,000 worth of PENDLE amid positive market sentiment.

Arthur Hayes, co-founder of BitMEX and a prominent KOL in the cryptocurrency field, has just made a notable purchase of the utility token of the Pendle protocol – PENDLE. According to on-chain data provided by Lookonchain, this transaction involved the purchase of 218,000 PENDLE, with a total value of up to 536,000 USD.

At the moment, $PENDLE is trading at 2.54 USD, up 5% over the past seven days. This token has attracted positive attention from the market in recent weeks thanks to its innovative approach to tokenization and yield trading.

Arthur Hayes increases PENDLE accumulation

On platform X, Lookonchain highlighted Arthur Hayes's latest transaction, where he purchased PENDLE worth 536,000 USD. The deal was executed in two batches: the first batch with 105,000 tokens and the second batch with 113,000 tokens, bringing the total to 218,000 tokens.

Notably, this deal occurred shortly after Bloomberg included the Pendle protocol – the platform behind this token – in the most reputable benchmark indices of traditional finance, specifically the Bloomberg Galaxy DEFI index.

Pendle has introduced an innovative term yield trading method that helps investors optimize profits through a specialized AMM smart contract (Automated Market Maker), designed for assets with depreciating value over time. Recent advancements in the protocol, particularly updates and a series of strategic partnerships, have contributed to enhancing PENDLE's position and value in the market.

Price Outlook for PENDLE: Is the 3 USD Mark Feasible?

After a prolonged adjustment period, PENDLE has begun to show signs of recovery on the 4-hour chart. The price has surpassed the 50-period moving average (50-SMA), indicating that buying pressure is returning to the market – a positive turnaround after several weeks of weakness.

Currently, the market is facing an important challenge at the 200-period moving average (200-SMA) around the level of 2.7 USD. If the price can break through and maintain above this threshold, the recovery trend will be reinforced. Conversely, if it fails, the current uptrend may just be a short-term technical rebound before the market continues to correct.

PENDLE price chart | Source: TradingViewIt is noteworthy that the fundamentals of Pendle remain very solid despite price volatility. The total value locked (TVL) still maintains above $4.6 billion, and the protocol continues to generate impressive revenue along with annual fees. This stability indicates that activity on the platform remains vibrant, even though the token price has faced pressure.

The DeFi index of Peddle Finance provided by DeFiLlamaOverall, the market is showing signals of transitioning from a weak state to an initial recovery phase. If buying power is strong enough to maintain prices above the 200-SMA line, investor sentiment towards Pendle could become noticeably more positive.

The recent recovery is particularly noteworthy due to the return of capital flows and trading volumes, which had been quite subdued for most of November. While it is not yet an explosion, this increase indicates that traders have begun to take an interest again after a long period of watching from the sidelines.

The open interest index also reflects this subtly. After a strong correction in mid-October, the market has become more transparent. Currently, open interest is gradually increasing again – a sign that new positions are being opened cautiously and more sustainably, helping to create a solid foundation for the upward trend.

Pendle momentum indicator chart | Source: TradingViewOn the 4-hour chart, the price continues to rise; however, momentum indicators have issued warning signals about potential short-term overbought conditions. The RSI is approaching the overbought zone, while the MACD, though positive, is only in the early stages of a trend reversal. These signals are not enough to end the upward momentum, but they often predict a slight correction before the market can continue to break out.

Mr. Teacher