Pendle price drops further after major unstaking by BitMEX co-founder

Pendle price has seen a significant decline following the unstaking of millions of PENDLE tokens by Arthur Hayes, the co-founder of BitMEX.

Hayes unstaked 1.55 million PENDLE tokens valued at $9.41 million, sparking concerns within the broader crypto community about a potential price dump.

Pendle price reaction

Prior to Hayes’s unstaking, PENDLE was trading at approximately $6.30.

Following the transaction, which occurred around 10:00 am UTC, the price dipped below the $6 mark and was recorded at $5.905 at the time of writing, representing a 2.7% decrease over the last 24 hours.

Source: Tradingview

Notably, the price of PENDLE has been on the decline since May 27, 2024, after it hit the resistance at $7. The price is fast approaching the 50 and 100 EMA levels and the RSI is currently hovering above the level 50 signaling a possible accelerated bear movement.

Furthermore, if the RSI drops below 50 it would only mean a continuation of the bear trend.

If Hayes was to dump the huge amount of the unstaked PENDLE tokens, it would put more pressure on the DeFi token possibly sending it towards the support level at $3.888 that was last tested on May 15, 2024.

Market participants are now closely monitoring Hayes’s moves, given his significant influence in the crypto space.

Community concerns and market reactions

Hayes currently holds 1.69 million PENDLE tokens, with an average purchase price of $2.24 per token. This holding translates to an unrealized profit of approximately $6.46 million.

The unstaking of such a huge amount of tokens has heightened market volatility and triggered a wave of speculation regarding the future stability and valuation of PENDLE.

The crypto community reacted swiftly to the news with many investors expressing bearish sentiments, fearing a substantial sell-off that could further depress the token’s price.

Despite these concerns, some community members remain optimistic, pointing to Hayes’s recent purchase of 600,000 additional PENDLE tokens at an average price of $6.15, a move seen by some as a sign of Hayes’s continued confidence in Pendle Finance and its long-term potential.

Pendle Finance, the protocol behind PENDLE, enables the tokenization and trading of futures yields through a novel Automated Market Maker (AMM) that supports assets with time decay.

This innovative approach to tokenization has garnered significant attention and investment, positioning Pendle as a notable player in the DeFi space. In addition, Hayes has publicly endorsed Pendle Finance making his actions all the more impactful on market perceptions about PENDLE.

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