Ethena (ENA) is currently testing a crucial support level at $0.4847, with potential resistance at $0.5126 and $0.5657. Despite a sharp 10.81% decline over the past 24 hours, technical indicators suggest a possible price reversal.
Can ENA Hold Support and Rebound?
ENA’s recent price action has been under pressure, dipping below multiple support levels. However, the TD Sequential indicator has flashed several buy signals on the 4-hour chart, hinting at a potential bullish turnaround. If ENA can maintain support at $0.4847, it may rally toward $0.5126, with a breakout possibly pushing it to $0.5657. Conversely, failure to hold this level could lead to extended downside consolidation.
Investor Activity Signals Growing Confidence
A notable factor supporting ENA’s potential rebound is the surge in new addresses holding the token. Over the past week, new ENA addresses have spiked by 238.94%, while active addresses have increased by 97.84%. This uptick suggests that investors are accumulating rather than offloading, indicating a rise in long-term confidence despite recent price dips.
Analysis of ENA’s transaction data reveals that most transactions occur in the $0-$1,000 range, signaling strong retail participation. Meanwhile, the volume of large transactions has declined, implying a temporary lack of institutional interest. This trend suggests that retail traders are currently driving ENA’s market movement, which could support gradual price stabilization and recovery.
Also Read: Ethena’s USDe Holds Strong, But ENA Faces Bearish Pressures – What’s Next?
Market Positioning and Resistance Ahead
The In/Out of the Money chart shows that 69.66% of ENA holders are in profit, while 10.18% remain at a loss. This distribution suggests potential resistance as the price approaches $0.5126–$0.5657, where traders may sell to break even.
Will ENA Reverse or Extend Its Downtrend?
With growing investor participation and bullish technical signals, ENA has the potential to rebound. However, a decisive hold above $0.4847 is crucial. If buying pressure strengthens, ENA could surge past key resistance levels. Traders should remain cautious, monitoring volume trends and technical indicators for further confirmation of a breakout.
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.
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