Ethena (ENA) has flashed a buy signal, offering potential for a price rebound after a period of decline. This signal comes from the TD Sequential indicator on the 12-hour chart, suggesting that ENA could see a price recovery. At the time of writing, ENA was trading at $0.4838, marking a 4.49% increase in the last 24 hours. While this might seem promising, key resistance levels ahead could challenge its upward movement, and investors should carefully watch how the asset handles these hurdles.

Resistance Levels to Watch

At present, ENA is bouncing back from its demand zone, which is near the $0.4374 mark. This price level has provided support following the asset’s recent dip. However, the road ahead is filled with important resistance levels. The first significant resistance is located around $0.5249. If ENA can break past this resistance, it will likely face another challenge at $0.6770. Overcoming these levels is crucial for sustaining the bullish trend and potentially driving a longer rally.

If ENA successfully breaks these resistance points, it could pave the way for more sustained upward movement. However, until then, the price may face challenges in advancing.

Price Action Analysis and Demand Zone Support

The demand zone at $0.4374 has proven to be an important area for price stabilization. Following the recent price drop, ENA has found some support in this zone. If the price can maintain itself above this level, the likelihood of a sustained rebound increases. However, for any bullish move to continue, ENA must push past the aforementioned resistance levels, making this the key area of focus for short-term investors.

Daily Active Addresses and Network Activity

Ethena’s daily active addresses recently peaked at 1,130, reflecting moderate user engagement. This indicates that there is growing interest in the token, although the increase in activity is gradual rather than explosive. This steady uptick in daily active addresses could signal that ENA is building a foundation for future price appreciation. However, this trend alone may not guarantee a significant price rally unless it is backed by other indicators like transaction volume.

The increasing network activity could contribute to the overall bullish sentiment if it continues. However, it remains important for the demand to stay strong in order for the price to push further upward.

Transaction Volume and Price Support

ENA’s transaction count also saw a moderate rise, reaching 1,120 transactions. While not an extreme surge, this uptick suggests that demand for the token remains steady. Transaction volume plays a crucial role in supporting price action, as higher transaction activity can provide the momentum needed to break past resistance levels. However, should transaction volume fall, ENA’s price could struggle to maintain upward momentum.

In/Out of the Money: Bullish Signals?

At its current price of $0.4838, approximately 70% of ENA holders are “in the money,” which means they are holding the token at a profit. This is a favorable sign for continued bullish momentum, as more holders are likely to stay invested if the price continues to rise. On the other hand, the relatively low percentage of addresses “out of the money” suggests that potential sellers are cautious, possibly waiting for higher prices before considering selling.

In conclusion, Ethena’s buy signal is an intriguing development, but key resistance levels will determine the sustainability of this potential rebound. While network activity and the percentage of profitable holders provide a promising outlook, investors should remain cautious and watch for confirmation that ENA can break past its resistance levels. Furthermore, consistent transaction volume will be crucial for supporting ENA’s price and sustaining upward momentum. Keep a close eye on how these factors play out in the coming days before making any investment decisions.