Ethena's Critical Support Level
The Ethena (ENA) price has returned to a pivotal support level, drawing the attention of analysts. According to analyst Ali Martinez, this is the same zone that has historically triggered substantial rebounds. If this support holds, Martinez anticipates ENA could potentially rally towards the $0.50 mark, representing a doubling of its current trading value.
The weekly chart clearly illustrates the significance of this support level. On each occasion that the ENA price has tested this zone, buyers have stepped in decisively, leading to sustained upward price movements for weeks.
ENA Testing Reliable Support
Ali's analysis, based on the weekly chart, shows ENA currently resting on a horizontal support zone that has previously spurred major reversals in July, September, and earlier this year. Each of these instances was followed by strong buying activity and a multi-week price increase.
Currently, the ENA price is trading within the $0.23–$0.24 range, directly on this critical support. As long as the price remains above this level, the bullish outlook is expected to persist.
A minor dip to $0.21 would not invalidate the current price structure, but a weekly closing price below this level would weaken the bullish sentiment.
Momentum Slows, Buying Pressure Persists
On the 4-hour chart, there is a noticeable cooling of momentum. The ENA price has been in a downtrend for several days, with the MACD indicator showing red and open interest declining, indicating a flush-out of leverage. This is a common occurrence when an asset is seeking a bottom.
Despite the pullback, the support level continues to hold. Early signs of small reversal candles are beginning to appear, suggesting that buyers are gradually entering the market. If the ENA price can successfully reclaim the $0.27–$0.29 zone, this could signal a turning point for momentum.
Potential for a 2x Price Increase
Ali's projections indicate a potential path for ENA to reach the $0.47–$0.50 range if the current support level leads to another significant rebound.
The chart includes a dotted line representing a potential bounce, mirroring ENA's historical pattern of consolidating, testing lower price levels, and then experiencing a surge.
Martinez also notes that ENA might experience a slight further dip before initiating a larger upward trend, a common tactic known as a shakeout before a significant trend reversal.
Outlook for ENA
The ENA price is currently positioned at a level that has historically defined its price action. If this support holds firm, the conditions for a rally towards $0.50 remain highly probable. Should this support break, the bullish scenario would be postponed rather than invalidated, with the current technical indicators still leaning towards a potential bounce.