Key Takeaways
- ENA completed a prolonged correction in May.
- The first major uptrend ended.
- Current consolidation is likely to end with an upward breakout.
Ethena (ENA) shows signs of recovery after recovering from a prolonged corrective structure.
The asset recently broke out of a downtrend, consolidating just above a key horizontal support zone.
The wave structure on higher and lower time frames supports a potential breakout into uptrend continuation, provided critical resistance is cleared.
However, confirmation is still needed, as ENA remains in a pivotal zone between deeper correction and trend continuation.
ENA Price Analysis
The 4-hour chart reveals that ENA completed a W-X-Y-X-Z corrective structure, bottoming out at $0.257 on May 6.
A five-wave impulse rally occurred from the wave Z low, pushing the price to $0.46 on May 14.
After peaking, the retracement bottomed at $0.34, aligning with the horizontal support level.
ENA is now hovering between $0.34 and $0.40 in a horizontal range.
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This range has acted as resistance and support multiple times throughout the downtrend, adding significance to the current zone.
The Relative Strength Index (RSI) shows a prior bearish divergence, which resulted in the retracement, but momentum has stabilized.
The bullish scenario remains if ENA holds above $0.34, the first higher low after the breakout of the descending structure.
A move above $0.46 would signal upward continuation, with higher targets in sight.
If rejected again at resistance, a consolidation or another retest of lower support levels at $0.30 could follow.
ENA Price Prediction
On the 1-hour time frame, ENA appears to have completed wave (2) of a 78% five-wave impulsive rally, finding support at $0.34.
This zone aligns with the 0.618 retracement of the previous impulse and coincides with horizontal demand levels, strengthening its role as a potential local bottom.
The move from this area formed the beginning of wave (3), provided it gained upward momentum.
If ENA breaks above the descending resistance trendline and surpasses $0.416 (0.236 Fib), wave iii could target the 1.618 Fibonacci extension at $0.66.
Immediate resistance remains $0.46; a successful breach would confirm the bullish case.
However, RSI has not yet entered the overbought territory, leaving room for further upside before short-term exhaustion.
Failure to maintain above $0.34 would invalidate the current wave count and suggest a potential retest of the 0.786 Fib level at $0.30 or even the 1.0 Fib at $0.26.
The structure remains bullish as long as ENA maintains above $0.34.
The following 48 hours could determine whether wave (3) begins or further consolidation occurs before continuation.
The current rise should transition to a new emerging uptrend, and the first significant signs will be resisting the 0.46 high.
But the strongest confirmation will come when it surpasses it, as that would mean that buyers have stepped in and scooped the token at a higher price than before.
Key Levels to Watch
- Support: $0.34, $0.30, $0.26.
- Resistance: $0.416, $0.464, $0.54.
- Upside Target: $0.66 (1.618 Fib extension of wave 1).
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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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