Pendle (PENDLE) Token Attracts Whales as 5 Newly Created Wallets Withdraw 2.66M Tokens From Binance

Pendle (PENDLE), a DeFi protocol focused on tokenized yield trading, drew attention recently due to a reported surge in large whale transactions associated with its token.

Pendle (PENDLE), a decentralized finance (DeFi) protocol focusing on tokenized yield trading, is drawing attention following a report highlighting large-scale transactions of its token, PENDLE.

According to data from on-chain analytics provider Lookonchain, five newly created wallets en masse withdrew 2.66 million PENDLE tokens from Binance. This amount is valued at nearly $7.9 million over the past five days, as stated by Lookonchain.

The significant off-exchange movement of such a large token holding might indicate confidence among major holders and could set up a bullish price movement for PENDLE if the accumulation continues.

Typically, large-scale withdrawals from exchanges suggest long-term holding intentions from investors rather than immediate plans for short-term trading. If these whales continue to accumulate PENDLE in private wallets, it could decrease the readily available supply on exchanges.

This scenario can create a supply-demand imbalance that might push prices higher, especially if demand for the token increases.

Does Pendle Offer Competitive DeFi Yields?

Market analyst "Karl" noted that the broader DeFi ecosystem is currently in a generally low interest rate environment. The average stablecoin Annual Percentage Rate (APR), weighted by total value locked (TVL), is just 5.8% across the space.

However, Pendle's own yield-bearing products stand out in this context. For example, its Level USD Pendle IY offering provides the highest stablecoin yield among major tracked DeFi protocols, at 12.4%.

This competitive yield difference could potentially drive greater adoption for Pendle among DeFi users seeking higher returns than currently available on established platforms. Aave V3, for instance, offers approximately 3.4% on USDC deposits.

DeFi stands at one of the lowest historical rate environments, with a TVL-weighted average APR of just 5.8%The opportunity for new protocols offering high-yield returns has never been larger@neutrl_labs coming soon pic.twitter.com/vf0WTi0XfC

Despite this attractive yield proposition, Pendle's overall TVL has dropped sharply from its reported peak of nearly $6.7 billion in June 2024. Its TVL is currently closer to $3.14 billion, according to DefiLlama data.

This large drop in platform TVL suggests that significant capital outflows have impacted Pendle over the past several months. The outflow might be due to broader crypto market trends or specific liquidity shifts occurring within the DeFi sector itself.

What Does PENDLE’s Price Chart Show?

As per CoinMarketCap data, PENDLE is currently trading at around $2.95. This price reflects a 2.15% gain over the past 24 hours.

The next key technical support level for PENDLE is identified at $2.60. This price aligns with the token's 20-day exponential moving average (EMA), a key short-term trend indicator.

Relative Strength Index (RSI)

The Relative Strength Index (RSI), a momentum indicator, is currently at 54.39. This value indicates that momentum is neutral but potentially turning slightly bullish following recent price action.

The upward gradient observed on the RSI line suggests rising buyer demand at current price levels, even amidst broader market uncertainty. Holding above the $2.60 EMA support level is likely key for sustaining any nascent bullish momentum for PENDLE.