Key Takeaways
- Ethena (ENA) broke out from an 88-day resistance trend line.
- The price failed to close above the $0.45 horizontal resistance.
- Can ENA close above this resistance and move toward $1?
Ethena paced the crypto market with over 15% gains in the past 24 hours. Before accelerating the rally, ENA broke out from a 3-month resistance, suggesting its downtrend is over.
Now, the ENA price faces a make-or-break resistance at $0.45. Can it break out above it and move to new highs, or will its rally be short-lived? Let’s find out.
ENA Price Reaches Resistance
The daily time frame chart shows that ENA broke out from a descending resistance trend line on May 9.
Before the breakout, the trend line had existed for 88 days, preceding a 52% downward trend.
After the breakout, ENA reached a high of $0.46 before falling slightly and being rejected by the $0.45 resistance.
The $0.45 area is key, and a breakout above it can accelerate the upward trend further.
If that happens, the ENA price could reach the next resistance at around $0.80.
Technical indicators paint a bullish picture. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing.
The RSI is above 50 while the MACD is positive, both signs of a bullish trend. As a result, the ENA price analysis is bullish, and a breakout above $0.45 is likely.
Let’s look at a lower time frame and see what might happen next.
What’s Next for ENA?
While the long-term prediction is bearish, there are two possibilities for ENA’s short-term movement.
The bearish possibility (top) is that ENA has completed a five-wave upward movement and will soon begin an A-B-C correction (red).
Ethena’s bullish count (bottom) suggests the price finished its five-wave increase and ensuing correction before starting another upward movement.
The bearish count is slightly more likely since the RSI and MACD have generated bearish divergences (orange).
If a retracement happens, the $0.33-$0.36 area can provide support before the price heads higher.
In both possibilities, an eventual breakout above $0.45 is likely.
Bullish Long-Term Trend
ENA’s long-term analysis is bullish, suggesting the price will break out from the $0.45 horizontal resistance area.
However, it is unclear if the short-term local top is in. Two valid wave counts are in place, one of which predicts a significant retracement before new highs.
The reaction to the $0.45 is key in determining which will play out.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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