Ethena (ENA) is at a turning point testing the $0.50 support level, a price zone that traders are closely monitoring.
According to market analyst AltCryptoTalk, ENA needs to break above $0.705 to regain bullish momentum.
As technical indicators suggest a possible reversal, traders are evaluating whether the asset is set for a breakout.
Additionally, the TD Sequential indicator has flashed multiple buy signals on the 4-hour chart. This suggests that ENA may be primed for a rebound.
ENA Price Struggles at Support While Bears Dominate
At the time of writing, ENA price was at $0.4894. It has risen by 0.99% within the last one day.
Its price oscillated between $0.4937 and $0.4837 it has been most probably consolidating at a significant support level.
Analyst AltCryptoTalk notes that ENA has been trending inside a descending channel, characterized by lower highs and lower lows.
This pattern suggests that the asset remains in a bearish phase until a breakout above key resistance occurs.
The $0.50 support has been tested multiple times. if it fails, further downside toward $0.40 could be the next move.
However, if buyers step in and push the price above $0.705, momentum could shift in favor of the bulls.
A successful breakout from this level would invalidate the bearish structure and open the door for a potential rally toward $1.00.
Inverse Head and Shoulders Pattern And TD Sequential Buy Signals
Among the significant formations which can be observed on the ENA/USDT 4-hour price chart, the most apparent signal for the further increase is the appearance of the inverse head and shoulders formation.
Such a formation means if ENA bulls manage to push the token above $0.70, the token may trade between $0.90 within the next few days.
Market analyst Ali has noted multiple buy signals from the TD Sequential indicator.
This suggests weakening selling pressure and increases the likelihood of a potential reversal.
Key Technical Indicators
The Relative Strength Index (RSI) is currently at 28.58 signifying oversold conditions for ENA which points to a deviation in selling pressure and possible bounce.
As for MACD, the MACD line is still below the signal line pointing to the continuation of bearish conditions.
But, it has created a new pattern and a histogram is visible that indicates a probable crossover to the opposite trend is just around the corner.
For the bulls to be confirmed, ENA price needs to regain the $0.70 level and hold it firmly to affirm its strength.
In other words, if this breakout occurs, traders should expect a price bounce towards the $1.00 level which correlates the best with important resistance levels.
Decline in Open Interest Suggests Uncertainty
Derivatives market data shows a 4.91% drop in open interest, signaling reduced speculative activity in ENA trading.
The total open interest stands at $261.1 million, with most of it concentrated on major exchanges.
A decline in open interest often suggests that traders are closing positions and waiting for clearer signals before committing to new trades.
If open interest increases in the coming days, it could indicate renewed confidence in ENA’s price direction.
Will ENA Price Breakout from Triangle Formation or Go Further Down?
It will be important to see whether ENA price will return to the support level in the next 24 to 48 hours or not.
If ENA ultimately closes above $0.7050 it can head towards the $0.90 level and further up.
Nevertheless, if the $0.50 support level is breached, there may be a drop to $0.40 before the market turns around.
The post Ethena (ENA) Price Nears $0.50 Support, Breakout Likely? appeared first on The Coin Republic.
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