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ENA's price approaches vital resistance as underlying bearish pattern persists.

Ethena's (ENA) current support level is under scrutiny at $0.22. Maintaining this critical point could lead to a potential upward swing, targeting $0.47. However, if this level crumbles, the path may open for a dip back to earlier lows.

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3 min read
price of ENA approaching crucial support, maintaining bearish formation
price of ENA approaching crucial support, maintaining bearish formation

ENA's price approaches vital resistance as underlying bearish pattern persists.

Hey there! Let's dive into the crypto world and talk about Ethena (ENA). This digital asset's trading close to its yearly lows at a key support level. If the bulls can hold this ground, we might witness a rotation back towards the range highs, but as of now, confirmation is needed.

ENA has been caught in a trading range between a high time-frame support of around $0.21 and major resistance at $0.47. This broad consolidation zone could shape the price action in the coming weeks and months. Right now, ENA is hanging out just above the yearly low at around $0.22 - a critical juncture for both bulls and bears.

Tech breakdown

  • Trade Range: The $0.21 support and $0.47 resistance defines the current market structure.
  • Lost Value Area Low: The bearish rotation from the value area high to low is complete.
  • Volume Spike at Support: Higher-than-usual volume at current levels hints at potential buyer interest.

From a technical perspective, ENA's current position follows a completed bearish auction rotation. The price previously rejected the value area high, the point of control, and has now dropped through the value area low, marking the end of the downward move. As ENA hovers near the $0.21-$0.22 support zone, the market is teetering on the edge of a decision.

If the $0.22 line cracks under the pressure, a drop towards the swing low is more likely. However, if the bulls can defend this level or trap sellers with a dip below the lowest points, a rebound could occur, potentially targeting the mid-range and eventually the high time-frame resistance at $0.47.

Supporting factor: Volume profile

The high volume at current levels could imply demand returning around this support zone. This could suggest that buyers are accumulating. Yet, the market structure still points towards bearish trends for now. A shift in structure, such as a higher low followed by a breakout above the value area low, would be necessary to confirm a bullish tendency.

Bulls' dilemma

Converting potential demand into a trend reversal is the bulls' major challenge. Until ENA decisively reclaims lost levels, the path of least resistance remains sideways or downwards. However, the proximity to the yearly low offers a well-defined risk-reward setup for long-biased traders hunting for a reversal at the range bottom.

Upcoming action

If ENA can hang onto the $0.21-$0.22 support and retake the value area low, a range-bound move towards $0.47 could begin. If ENA fails to hold this level, however, a drop towards the previous swing low is more probable. Keep an eye on volume confirmation and a structural shift before making an aggressive move.

Mixed signals

Recent price forecasts predict further declines in the upcoming days, with estimates projecting a drop of around 22-23% within a week. Although ENA is trading below key resistance levels (around $0.28 to $0.32) and close to support zones in the $0.20 to $0.24 range, indicating a range, the bearish sentiment prevails, which typically signals a trend reversal to the downside or continuation of bearish momentum.

All things considered, ENA's current outlook appears bearish, with expectations of further price declines in the near term. But, opportunities for savvy traders may arise from the well-defined risk-reward setup at the range bottom. Stay cautious, keep an eye on the market, and make your moves wisely!

  1. In the crypto world, ENA's trading near its yearly lows at a key support level, and if the bulls manage to hold this ground, it could rotate back towards the range highs, but confirmation is needed.
  2. ENA's current position follows a completed bearish auction rotation, with the price previously rejecting the point of control and dropping through the value area low.
  3. The high volume at current levels could imply demand returning around this support zone, suggesting buyers are accumulating, but the market structure still points towards bearish trends.
  4. To capitalize on opportunities, long-biased traders should wait for ENA to hang onto the $0.21-$0.22 support and retake the value area low, potentially triggering a range-bound move towards the high time-frame resistance, or wait for a failure to hold this level, leading to a drop towards the previous swing low.

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