PENDLE has weakened significantly in the past 24 hours, with its price falling 14.19% and trading volume rising to $66.74 million. The increased volume during the decline indicates growing selling pressure, and the market's reaction to the breach of the $1.50 level is relatively concentrated.
During the same period, Pendle's market capitalization fell to $262.93 million. This decline was not due to low trading volume, but rather occurred amid increased participation, indicating that short-term funds are accelerating their position adjustments.
Binance has a dominant short position.
Binance's top traders' positioning data shows that 61.62% of accounts are short, while only 38.38% are long. As prices weaken, bets on further downside continue to increase, and short-term sentiment is clearly bearish.
However, excessive concentration of short positions could amplify subsequent volatility. If prices regain the level of around $1.45, which was previously breached, some aggressive short sellers may face pressure to liquidate their positions, leading to a faster rebound.
$1.45 becomes a short-term watershed.
The daily chart shows that after PENDLE broke below $1.45, its previous recovery structure was broken, and sellers regained control. The $2.16 level remains a strong resistance point, and the current price is still significantly away from that level.
Directional indicators also lean bearish. The ADX has risen to 34.96, indicating that the current trend is gaining strength; -DI remains above +DI, showing that selling pressure still dominates during the pullback phase. If this situation continues, the price may continue to test the demand zone around $1.00.
Funding fees turn negative
The weighted average funding rate for open interest fell to -0.0328%, indicating a further strengthening of short-selling pressure in the derivatives market. Negative funding rates typically mean that bearish traders are willing to pay costs to maintain their downside positions.
However, excessively negative funding rates could also indicate overcrowding of short positions. Once buying pressure reclaims nearby resistance levels, a rapid rebound driven by short covering could occur. Until then, Pendle's short-term structure remains weak, with market focus on whether it can recover $1.45 and whether the $1.00 area will become the next support level.
