Ethena (ENA) Drops 20% to $0.30 Support, Traders Eye 40% Rebound
1min read Ethena (ENA) has recently experienced a 20% pullback, finding support at the $0.30 level. This support zone is significant as it coincides with a confluence of a range-low and a bullish order block, suggesting potential for a rebound. Traders are eyeing this level for new buying opportunities, with potential targets at the mid-range level of $0.34 and the range high of $0.38, which could translate to gains of 13% and 27%, respectively. An extended rally and breakout from the current channel could push ENA further to $0.44 or even $0.48, representing a 40% potential gain. However, if ENA dips below the $0.28-$0.30 support, the bullish thesis would be invalidated.
Network activity data from Santiment indicates a bounce back in active addresses over the past three days, coinciding with ENA’s price decline. Additionally, there has been a sharp drop in ENA’s supply on exchanges, suggesting a substantial accumulation of ENA during this period. This accumulation, coupled with the price decline, could signal a potential price reversal if the metrics remain positive. However, the rally seen from April 27 was initially matched by strong spot market demand, as indicated by the uptick in the CVD (Cumulative Volume Delta) Spot indicator. Unfortunately, this demand soon faltered, as shown by the slight dip in CVD spot. A strong rebound from the $0.30 area may be confirmed if ENA’s spot market demand increases.
In summary, Ethena (ENA) is currently at a critical support level of $0.30, with potential for a significant rally if it can reclaim its March highs of $0.48. The recent accumulation spree and network activity data suggest a possible price reversal, but spot market demand remains a concern. Traders should monitor these factors closely as they assess the potential for a 40% surge in ENA’s price.
