ENA Altcoin Faces Bearish Signals Despite 3.44% Price Drop

ENA, an altcoin, recently broke out of a descending channel pattern, which has sparked optimism among investors. The altcoin's price is currently at $0.3583, following a 3.44% decline. The market capitalization of ENA stands at $1.89 billion. Despite the breakout, the altcoin's price is still testing crucial levels, leaving the market uncertain about whether ENA can maintain this breakout momentum or struggle to keep upward pressure.

ENA’s price had previously been in a phase of consolidation before breaking out of the descending channel. This breakout created a new price action structure for the altcoin. With the price now hovering near $0.3583, support levels around $0.35 might be critical for price sustainability. If ENA manages to hold above this level, it could target resistance zones near $0.47 and possibly challenge higher levels such as $0.48, $0.68, and even $1.00. However, if the price fails to maintain support at $0.35, ENA could test lower support levels at $0.26, signaling a potential price retreat.

On-chain analysis painted a rather bearish picture for ENA. Despite the breakout, the net network growth highlighted a decline of 0.83%, hinting at a drop in activity. Additionally, the “in the money” metric flashed a change of -0.80%, suggesting that a significant portion of holders are currently at a loss. While concentration was slightly positive at 0.13%, large transactions were largely bearish, with a significant -6.06% drop pointing to more selling pressure in the market. Taken together, these on-chain signals imply that the token could face significant hurdles despite its latest technical breakout.

Open interest in ENA rose by 3.38%, climbing to $345.78 million, underlining higher market participation. However, liquidation data revealed that long positions are being liquidated more than shorts – $29.62k in long liquidations versus $6.42k in shorts. This fuels downward pressure, but once these liquidations are cleared, the market may rebound. For a sustained rally, ENA needs to break resistance levels around $0.47 and $0.48.

Although ENA’s latest breakout from the descending channel raised hopes for a price surge, bearish on-chain signals and support levels indicated that the token may face challenges. If ENA can hold above $0.35 and push past the resistance at $0.47, it might see a sustained rally towards higher price targets. However, without breaking through these critical levels, ENA could struggle to maintain any upward momentum. Therefore, while there is potential for a further rally, ENA must prove its ability to hold key support levels to confirm any upside.