A downturn within a channel has brought Ethena (ENA) back to a crucial support trendline. Will buyers drive a comeback and set the stage for a new peak formation?
As the 52nd largest cryptocurrency in the market, Ethena struggles to maintain its footing at the $1 psychological level. With a 2.55% recovery in the past 24 hours, it remains one of the few tokens in the green while the broader market declines.
Although Ethena has experienced an 18.45% rise over the past 7 days, the recent pullback has dropped its market cap below $3 billion. Will this pullback lead to a sharp correction, or is a reversal on the horizon for a new swing high?
Ethena (ENA) Price Analysis
On the 4-hour chart, Ethena’s price action forms a rising channel pattern. During the recent market pullback, the price action reversed bearishly within the channel’s trendlines.
The downfall saw Ethena’s price drop from $1.1475 to a 24-hour low of $0.86483, marking a nearly 25% pullback and testing the local support trendline.
However, the price is now holding steady above the crucial support level, signaling a potential bullish comeback. Following a quick reversal, Ethena saw a 4.02% price jump in the past four hours, forming a bullish candle and challenging the short-term supply line.
Additionally, it has established dominance at the center pivot level of $0.9791. Currently, ENA is trading at $1.02, up by 5% at press time, suggesting the possibility of a bullish rebound.
The MACD and signal lines have both reached the center level and are closing the bearish gap, supporting the chances of a bullish reversal. Should a bullish crossover occur, the MACD indicator will trigger a buy signal for Ethena.
Ethena Price Targets
According to the pivot levels, the immediate resistance for Ethena is at $1.1977, the R1 resistance pivot level. If the price breaks above this, the trendline breakout could challenge the R2 pivot level at $1.3361.
In the event of a broader market crash, especially if Bitcoin tests the $90,000 support, Ethena could break below the support trendline. In such a scenario, key support levels for Ethena are at $0.8107 and $0.5921.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
