Pendle Eyes $2 Support Test After Polychain Capital’s Loss-Making Exit

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Pendle Eyes $2 Support Test After Polychain Capitals Loss-Making Exit

Pendle (PENDLE) price has declined nearly 18.5% over the past month, trading at around $2.17 amid sustained bearish pressure. Whale capitulation, including Polychain Capitals exit at a loss, signals weakening long-term holder conviction as selling dominates the market.

• Pendle faces prolonged downtrend since rejection 6.2 months ago, hitting $2.02 low.
• Daily drop of 4.1% reflects consistent whale distribution over 30 days.
• Polychain Capital sold 4.114 million PENDLE for a $3.99 million loss, per on-chain data from EmberCN.

What Is Driving the Pendle Price Decline？

Pendle price has been under significant pressure, trading at approximately $2.17 after a sharp rejection nearly 6.2 months ago. The token has navigated a steep downtrend, culminating in a low of $2.02, with a monthly loss of 18.5% highlighting ongoing bearish sentiment. Long-term holders, including institutional players, appear to be reaching capitulation amid persistent selling.

Since facing rejection nearly $6.2 months ago, Pendle traded inside a steep downtrend, eventually dropping to a $2.02 low.

At press time, Pendle traded around $2.17, down 4.1% daily and nearly 18.5% monthly, reflecting sustained bearish pressure.

That prolonged weakness appeared to push long-term holders, including institutions, toward capitulation.

Why Did Polychain Capital Exit Its Pendle Position？

Despite Pendle recording brief recoveries over the past month, whale behavior stayed consistent, leaning toward heavy distribution. CryptoQuants Spot Average Order Size indicated Big Whale Orders persisted for nearly 30 consecutive days, pointing to steady large-player activity in the market.

Source: CryptoQuant

One prominent example is Polychain Capital, as tracked by on-chain monitor EmberCN. The firm had accumulated roughly 4.114 million PENDLE tokens between March and September at an average price of about $3.16, investing approximately $13 million in total. However, after holding for several months, Polychain decided to exit the position entirely.

Source: EmberCN

Approximately four months later, Polychain sold its holdings at around $2.19 per token, resulting in an estimated loss of $3.99 million. This move underscores a broader sentiment shift, where initial optimism gives way to caution under extended market downside. Such capitulation by major investors often amplifies price pressure, as it reduces available buying support and encourages further sales from others.

This pattern extends beyond Polychain. Data from Coinalyze reveals Pendle has posted a negative Buy Sell Delta for nine consecutive days, indicating that sell orders have consistently outnumbered buys on the spot market. This metric confirms the dominance of selling pressure, with volumes tilting heavily toward distribution rather than accumulation.

Source: Coinalyze

Market analysts, drawing from historical patterns in similar DeFi tokens, note that prolonged negative deltas like this often precede deeper corrections unless countered by fresh inflows. Pendles trading volume has also seen a 15% decline week-over-week, per aggregated exchange data, further evidencing reduced participation from retail and institutional traders alike.