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- ENA price missed a potential breakout rally and witnessed a retracement.
- A rounding bottom formation was observed, and the altcoin was poised for an upsurge.
Ethena (ENA) could be near the bottom of its short-term downtrend and retest the 20-day EMA mark. This week, the ENA price spoiled its recent breakout move and revisited the $0.300 mark.
The ENA crypto price recently escaped a five-month falling wedge pattern and triggered a rise. However, the bull army could not surpass the 100-day EMA barrier and saw a pullback. This resulted in a 20% retracement this week.
Amid the retracement, the short-term trend conveyed the accumulation. At the same time, the ENA price action conveyed a rebound ahead.
However, the sudden shift in market sentiment and selling pressure caused ENA to miss the sustained buying pressure. This resulted in a fakeout.
With a strong correlation with BTC around 0.84, the ENA crypto price could see a short-term upsurge. It could happen if the broader market turns bullish.
A daily close above $0.400 would validate the breakout and potentially spark a rally toward $0.4500 in the coming sessions.
ENA Price Analysis: Is a Breakout Likely?
The daily chart outlook of ENA price signified a recovery from the lows of $0.200 and noted a 40% bounce last month.
The altcoin could note some resistance following a recovery as profit saturates. However, until then, it has a chance of breaking ahead.
ENA Price by TradingView.com
Most technical indicators for ENA in the daily timeframes are mixed and convey neutrality.
The Relative Strength Index (RSI) rests around the midline region, 49 at press time. However, the MACD indicator still projected the green histogram readings, conveying bullish cues.
Crypto Analyst @TraderXO, in his X post, said that ENA crypto could be a better opportunity. Investors can add it during a pullback for the targets of $0.600 in the coming sessions.
At press time, ENA was trading at $0.3001 with an intraday decline of over 13.20%. This signified profit booking on the chart.
With a market cap of $426.80 Million, ENA was positioned as the 75th largest crypto. A look at the Fibonacci retracement level adds more insights to this prediction.
Currently, the ENA price rests above the 23.6% zone and fails to violate the 50% level. If the market sentiment improves, the price might elevate above the level.
Data from IntoTheBlock highlighted that new investors have gained interest in the token.
Over the last seven days, the new addresses have surged over 64.71%. In contrast, the zero balance addresses have surged over 33.97%.
This significant surge represented investor interest and the early anticipation of a price surge.
What Do Futures Market Data Say?
Meanwhile, the liquidation data indicated that long positions are at risk. Around $809.90k long liquidations were at risk at press time. Conversely, $93.39 short liquidations were available to cover their positions.
This significant liquidity crunch could impact the ENA price, and a retracement in the short term may be seen.
The Open Interest (OI) shed over 11.20% to $140.86 Million. This conveyed a long, unwinding move over the past 24 hours.
On the downside, $0.2800 was the immediate support zone. On the other hand, on the upside, $0.3700 was the resistance level to watch out for in the following sessions.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
