- Bitcoin’s drop to $59.8K triggers a broad crypto market decline
- NOT’s price drops 20% weekly, trading at $0.01302 amid bearish trends.
- PENDLE’s TVL falls 40% weekly, with user withdrawals totaling $3 billion.
The global crypto market has plunged back into bearish territory, with the leading digital currencies suffering significant losses. This downturn follows a brief recovery period on Monday when Bitcoin surged past the $63.7K threshold.
However, the resurgence was short-lived, as Bitcoin’s rapid decline to approximately $59,800 triggered a broader market sell-off, impacting altcoins like Notcoin (NOT) and Pendle (PENDLE).
CoinMarketCap data shows that NOT, which had been enjoying substantial gains earlier this month, fell by over 6% in a single day, erasing much of its recent progress. Meanwhile, PENDLE experienced an even steeper decline, losing nearly 15% of its market value as investors reacted to the widespread bearish sentiment.
NOT Token Loses 20% in a Week
Over the past week, NOT has been trapped in a persistent downtrend, consistently marking lower lows and failing to secure stable support levels. This relentless bearish sentiment has resulted in a 20% decline in value since the beginning of the week. As of press time, NOT trades at $0.01282.
Source: CoinMarketCap
However, amidst the gloom, there are whispers of a potential rebound. Market analysts point to the oversold conditions that may hint at an upcoming reversal. This optimism is bolstered by the Money Flow Index (MFI), which has climbed to 37.31 from its earlier lows below 30.
Such a rise in the MFI suggests a shift towards buying pressure, even as NOT’s price continues its downward trajectory. A scenario like this is referred to as a bullish divergence.
This scenario unfolds when price movements show a new low, yet there’s a noticeable uptick in capital inflow. Such a divergence signals that the selling pressure is waning, and savvy buyers are taking advantage of the lower prices, snapping up assets at a discount.
PENDLE Sees Sharp Decline
According to CoinMarketCap, PENDLE saw a steep decline of over 14% on Tuesday, making it the day’s biggest loser. This sharp price drop is closely linked to a dramatic reduction in the Pendle Protocol’s total value-locked (TVL), which plunged by more than 40% within a week.
Source: DefilLama
At its height in mid-June, the protocol boasted user deposits of upwards of $6 billion. However, the landscape shifted dramatically soon after, with the ecosystem seeing a massive $3 billion withdrawal in a mere week.
A significant portion of this exodus involved liquid re-staking tokens. As of June 1st, the remaining TVL at Pendle stood at $3.7 billion. This sharp decline in TVL impacted Pendle’s market cap, which plummeted by more than 18% to $617 million, placing it 103rd in market rankings.
However, despite this downturn, the 24-hour trading volume for PENDLE surged by 241.08% to $131 million. At press time, PENDLE was trading at $3.97.
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