Ethena (ENA) has shown signs of potential recovery, despite recent challenges in the market. After a significant drop in price, ENA is now testing critical support levels, fueling speculation about the token’s next move.
At the time of writing, ENA was trading at $0.4882, experiencing a 10.81% decline over the last 24 hours. However, technical analysis suggests a possible rebound. The TD Sequential indicator on the 4-hour chart recently flashed multiple buy signals, which could signal a shift in momentum and a potential upward movement for the token.
ENA is currently testing a crucial support level around $0.4847. This level is vital for the token’s price action, as it has the potential to reverse the current downtrend and set the stage for an upward rally. If ENA can maintain this support, the next resistance levels to watch are at $0.5126 and $0.5657. These levels represent key price barriers that could dictate whether ENA breaks out or continues its consolidation.
However, if ENA fails to hold the support at $0.4847, it could face further downside pressure, and the token might remain in a consolidation phase or experience a deeper decline. As such, market watchers are closely monitoring these support and resistance zones.
Despite the recent downturn, ENA has seen a notable increase in investor interest. The number of addresses holding ENA has surged by 238.94% in the past week, signaling growing demand for the token. Additionally, active addresses have risen by 97.84%, indicating that investors are holding their positions rather than engaging in frequent trading. This surge in addresses reflects a growing confidence in the token, despite its current price dip.
The increase in investor activity suggests that ENA may have strong support at lower price levels, potentially indicating a long-term bullish outlook. Retail investors seem to be leading the charge, as the majority of transactions are happening within the $0.00 to $1k range. However, higher transaction volumes have decreased, which may point to limited institutional involvement at this price level.
Looking at the In/Out of the Money chart, a significant portion of ENA investors are currently in profit. Approximately 69.66% of addresses are in the money, while 10.18% remain out of the money. This shows that a majority of holders are positioned to make a profit if ENA’s price increases. However, as ENA approaches the resistance levels around $0.5126 to $0.5657, selling pressure may rise as investors in profit seek to capitalize on the price recovery.
As ENA tests its key support levels, the surge in new addresses and the positive signals from the TD Sequential indicator suggest that a rebound may be on the horizon. If the token can maintain support at $0.4847 and break through resistance levels, ENA could see a price increase in the near term.
However, if the support fails and selling pressure increases, ENA could experience further downside. Traders and investors will need to closely monitor the price action and sentiment to determine if ENA is poised for a reversal or if the downtrend will continue.
With 69% of investors in profit and rising interest from new addresses, ENA has the potential to recover if it can maintain momentum and navigate key resistance zones. The coming days will be critical in determining whether Ethena can break out of its current consolidation and head toward higher price levels.
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