Ethena (ENA) has been witnessing poor price actions in recent weeks, with its price struggling to set a clear trajectory. As its price remains in a tight compression, prominent analyst MACrypto shared on X that a significant move could be on the horizon soon.
Ethena attempting a recovery wave
The lack of clear direction has influenced Ethena to move in a consolidation mood for multiple weeks now. Today, MACrypto shared a technical analysis on X, disclosing that Ethane is trying to make a major breakout. ENA’s price was testing a significant supply between $0.47 and $0.48 when the market was disrupted by unfortunate news, creating further market volatility.
Yesterday, on Friday, Feb.21, the ByBit exchange was hit by a $1.4 billion security breach. The accident caused fear among investors, triggering expanded price fluctuations within the broader cryptocurrency market. However, ByBit acted promptly and ensured investors’ safety.
Today, MACrypto’s insights showed that Ethena’s recovery has begun. Its current price compression is providing an opportunity for an accumulation phase, which would eventually lead to a market rebound soon.
ENA price updates
Ethena is currently displaying indicators of a potential recovery despite facing current setbacks in the market. The altcoin has been experiencing an extended decreasing trend over the past month. After significant price declines, ENA now is testing crucial support levels, eliciting rumors about its next trajectory.
At press time, the asset’s price is standing at $0.4421, after witnessing a 4.9% decrease over the previous day. However, on-chain indicators signal a possible recovery. The Tom DeMark indicator currently signals numerous buy indicators, which suggest a change in movement and a possible upsurge for the asset.
The coin is currently trying to move within an important area between $0.41 and $0.47. This area is important for the token’s movement, as it has the ability to overturn the ongoing plunge and lays the foundation for an upswing. If the asset can sustain its value around this area, it can climb to another important region around $0.53 and $0.59. This region is important as it could determine whether the asset moves away from its slump or continues embracing its dip.
Despite the current price slump, ENA has experienced a substantial rise in trader interest. The amounts of active wallets holding the token have risen by 187.03% over the previous week, suggesting increasing demand for the altcoin. Data also shows that traders are holding their tokens instead of participating in regular trading. This increase in wallets signifies a rising enthusiasm for the asset despite its recent downturn.
As Ethena tests its crucial support levels, the increase in new addresses and optimistic indicators from the TD Sequential index shows that a market recovery could be forthcoming. If ENA can maintain its price around support levels between $0.42 and $0.46, and break through the resistance levels of $0.52 and $0.58, it could experience an upward momentum in the coming weeks.
