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Ethena (ENA), the cryptocurrency that surged a staggering 600% in just 100 days between September and December 2024, has encountered a significant roadblock. Following a failed attempt to reach new highs in December, the price of ENA plummeted by 45%, hitting a low of $0.72.
Technical analysis reveals a troubling double top formation, a bearish pattern often signaling the end of an upward trend. This pattern emerged between December 16, 2024, and January 4, 2025, with the breakdown of the ascending support trend line confirming its bearish implications.
While ENA has since rebounded, key indicators remain cautious. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bearish divergences, suggesting waning bullish momentum.
However, a wave count analysis offers a glimmer of hope. This analysis suggests that ENA may have just begun the fifth and final wave of its upward movement. If this holds true, the price could potentially reach between $1.69 and $1.86.
Despite this optimistic outlook, a key hurdle remains. ENA must reclaim its ascending support trend line at $1 to confirm the start of this final wave. Until then, the risk of a deeper correction persists.
Also Read: Ethena (ENA): Why This Rising Crypto Could Be the Next Big Weekly Gainer
Recent weeks have witnessed a rebound in ENA’s price, offering preliminary signs that the correction may be over. A successful reclaim of a crucial diagonal resistance would solidify the beginning of an upward movement towards the projected target range of $1.69-$1.86.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
