- PENDLE crypto generated a recovery gain of 43% in the last 30 trading days.
- Exploring key market re-entry points as whales reduced their exposure to the market.
Shuttle [PENDLE] extended the recovery in October, hitting a new monthly high of $5.13, gaining 43% over the past 30 trading days.
However, the $5 psychological level has been a critical resistance in the past, can it crack it for good?
PENDLE crypto hits a hurdle
Source: PENDLE/SUDT, TradingView
At the time of writing, the roadblock had already attracted short sellers, as evidenced by the red daily candlestick. This could accelerate profit-taking by short-term holders.
Furthermore, key technical chart indicators indicated overbought conditions, signaling a possible pullback. But PENDLE has hit higher highs and higher lows, creating a bullish market structure.
Therefore, it made sense to go long the asset instead of going short. There were two possible long scenarios.
First, a return at the short-term support above $4 and the 50-day EMA (blue line), with a bullish target at $5. This would yield a potential gain of 23%, but only if PENDLE returns to $4.
The second scenario would be a retest and a reversal from $5 to support (highlighted in white), allowing bulls to keep an eye on the $6 target. Such a move could yield a potential gain of 18%.
A crack below $4 would invalidate the long position; therefore, a stop loss could be placed just below it.
Shuttle whales limit their exposure
Source: Hyblock
Although the recent upward trend has been strong, as evidenced by a reading of 43 on the ADX (Average Directional Index), the whales’ actions called for caution.
Historically, PENDLE has tended to recover when whales add more positions than retailers (green whales vs. Retail Delta). On the contrary, if they reduce exposure, a relapse always follows.
Since early October, whales have added more PENDLE, causing an upward trend in prices. However, whalers have reduced their exposure somewhat at the time of writing. This could partially explain the profit taking at the $5 roadblock.
Source: Santiment
The above observation was supported by data from Santiment, which showed a slight decrease in whale supply (blue).
It was also worth noting that there was a spike in off-exchange supply, reinforcing the accumulation trend, perhaps among retailers. This doesn’t necessarily have to pump PENDLE.
Read Shuttle [PENDLE] Price prediction 2024-2025
During the August sell-off, both accumulation trends peaked, led by whales, and PENDLE subsequently recovered. However, a strong PENDLE rally could prove challenging, with the Whales taking a backseat.
Thus, a pullback from the $5 roadblock could make the first long scenario more feasible. But a crack below the dynamic support of the 50-day EMA would negate the bullish outlook.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer