ENA's price skyrockets by 17% within a week, hinting at a potential journey towards the $1 mark!
In the cryptocurrency world, Ethena (ENA) has been making waves with its recent performance. The digital asset surged by 17.6% over the past seven days, reaching a high of $0.69 before experiencing a 10.45% drop in the last 24 hours, bringing the price to $0.55 at press time.
Despite this short-term pullback and the volatility that comes with it, the evidence points towards a continued ENA rally. The uptrend remains intact, with higher highs and higher lows, supported by a rising trendline and the 50-period EMA acting as support at around $0.54.
On-chain metrics also paint a positive picture for ENA. The On Balance Volume (OBV) for ENA has been rising steadily in July, and the smaller addresses have continued to buy more ENA, indicating continued accumulation. The supply distribution does not show sustained selling pressure from holders, which is an encouraging factor.
Recent analysis suggests key support levels around $0.44 and $0.47, with a significant supply cluster as low as $0.35 acting as a strong support zone if prices fall further. This indicates underlying accumulation and potential price floors below current levels.
However, the Moving Average Convergence Divergence (MFI) has shown a bearish divergence in recent days, which could signal a short-term correction. Some predictions expect a near-term drop of about 23% to around $0.43 within days, pointing to a possible short-term correction.
Yet, the overall sentiment remains bullish. The announcement of the first stablecoin-focused Ethena treasury company, StablecoinX, has boosted bullish sentiment. The company plans to pursue a "multi-year treasury strategy to build a reserve of ENA".
Moreover, whales have been accumulating ENA tokens, with the number of addresses holding 100K-1M ENA balance growing from 514 to 574. This development is expected to be extremely bullish for ENA in the long term, and a $1 price target might not be just hype.
It's important to note that a deeper dip across the crypto market could be imminent, given Bitcoin's fall below $115k. Monitoring key support levels ($0.44-$0.47 and $0.35), trendline integrity, and market sentiment will be crucial for assessing if a top is forming.
In conclusion, while price retracement is ongoing, on-chain metrics and technical patterns do not confirm a local top for ENA at this time. The recent correction might reflect broader market volatility, but ENA's on-chain metrics do not definitively signal a local top; rather, they indicate healthy support zones and continuation of the prevailing bullish trend unless critical support breaks.
- The crypto market, along with Bitcoin (BTC) experiencing a fall below $115k, hints at a potential deeper dip in the market, which might be imminent.
- The price of Ethena (ENA) dropped by 10.45% in the last 24 hours, bringing it to $0.55 at press time, but the uptrend remains intact, with higher highs and higher lows.
- A key support level for ENA is around $0.44, and if prices fall further, a significant supply cluster as low as $0.35 acts as a strong support zone.
- Whales have been accumulating ENA tokens, with the number of addresses holding 100K-1M ENA balance growing, which is expected to be extremely bullish for ENA in the long term and potentially points to a $1 price target.
- The first stablecoin-focused Ethena treasury company, StablecoinX, has boosted bullish sentiment, as the company plans to pursue a "multi-year treasury strategy to build a reserve of ENA", further enhancing the overall sentiment of the crypto market.
