PENDLE slumped over 14% on Tuesday, becoming the top loser of the day, according to data from CoinMarketCap. The token’s falling price coincides with the total-value-locked (TVL) for the Pendle Protocol falling over 40% in a week. The coin’s trajectory has now raised questions about its future price.
Pendle Protocol faces TVL slump
The well-known DeFi platform Pendle Protocol, essential to the EigenLayer ecosystem, faces severe difficulties. Its total-value-locked (TVL) dropped by 40% last week. At its peak in mid-June, Pendle had over $6 billion in user deposits.
However, subsequent events resulted in a sizable withdrawal from the ecosystem. Users removed an incredible $3 billion from Pendle deposits in just one week, with a significant portion coming from liquid re-staking tokens. As of June 1, Pendle’s TVL is valued at $3.7 billion.
The total value of digital assets that are staked or locked in a specific decentralized application (dApp) or platform for decentralized finance (DeFi) is measured by a metric called Total Value Locked (TVL). The more reliable people believe a platform or dApp to be, the greater its TVL.
Will PENDLE fall further?
Over the last 30 days, Pendle recorded 13 out of 30 (43%) green days with a 7.19% price volatility. The coin’s positive trading sessions were attributed to Pendle’s recent developments, including smart contract upgrades and strategic alliances. These developments demonstrate the company’s commitment to innovation and expansion.
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However, with a majority of negative trading sessions, the coin has seen significant bearish sentiments, a situation that is currently impacting the market. At the press time, the coin is trading at $4.29, being down 14.60% as compared to the same time last day.
Today, PENDLE’s trading streak demonstrates significant selling pressure, mainly due to the initial decline at lunchtime, followed by little movement as the sellers control the market.
The price is still decreasing despite a brief recovery attempt, indicating that traders are pessimistic. As sellers sell off their holdings in the market, the general movement suggests that sellers are more active right now, driving down the price.
With a current Relative Strength Index (RSI) of 33.9, the token is considered neutral and may see further price drops in the near future. If the token finds support at the current levels and can reverse it, it can rise to its crucial support level of $5. However, a further bearish sentiment and news could push the price further downward.
