ENA, the native token of the synthetic dollar protocol Ethena, is facing significant bearish pressure despite signs of recovery in the broader market. According to crypto analyst Ali Martinez, ENA could experience a substantial price drop if it fails to hold above a key support level.
Bearish Breakout from a Parallel Channel
In a post on X (formerly Twitter), Ali Martinez pointed out that the ENA token has broken below the lower boundary of a parallel price channel. The upper trendline of the channel had acted as resistance, while the lower trendline provided support. This breakout suggests a potential downward price movement.

Martinez also warned traders to wait for confirmation, as the breakout could be a false signal. However, if ENA fails to reclaim the critical support level at $0.86, it risks dropping to $0.69 or even $0.57. To reverse the situation, ENA must recover the $0.86 level and aim for $1.
Current Price and Market Performance
At present, ENA is trading at $0.8201, marking a 1.68% increase over the last 24 hours. Its market capitalization stands at $2.48 billion, ranking it 47th among the largest digital assets on CoinMarketCap. Despite this short-term gain, the token has dropped by 16.50% over the past week and 33.21% over the last month.
Technical Analysis: Bears Still in Control
The daily chart from TradingView shows that the Relative Strength Index (RSI) is at 40.02, indicating that bears remain in control of ENA's price action. The downward slope of the RSI suggests that this bearish trend may continue.

The Moving Average Convergence Divergence (MACD) indicator also paints a concerning picture. The signal line (red) remains above the MACD line (blue), and the MACD histogram is still red. While the histogram's intensity is decreasing, offering a glimmer of hope, the overall outlook remains bearish.
Conclusion
ENA faces critical challenges as it struggles to hold key support levels. The token's ability to reclaim $0.86 and avert a further drop to lower price levels will be pivotal. Traders should remain cautious and monitor technical indicators closely before making investment decisions.

#priceprediction , #ENA , #cryptocurrencies , #ENAAnalysis , #CryptoNewss

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Current Price: $1.2842
Technical Analysis: Cup and Handle Formation
The $ENA /USDT chart is currently displaying the development of a classic cup and handle pattern, a widely recognized bullish formation in technical analysis. This pattern often signifies a period of consolidation and potential reversal after a downtrend, making it a key indicator for future price movement. The cup part of the pattern typically forms as the price declines, followed by a gradual rise to the same level. The subsequent handle formation suggests that the price is consolidating and preparing for a potential breakout. Once the handle is completed, the breakout from the pattern often leads to a sharp upward move, marking a reversal of the previous downtrend.
Key Reversal and Bullish Potential
For this pattern to signal a meaningful bullish reversal, traders should watch closely for a shift in market momentum. A successful breakout above the resistance level would indicate that the market sentiment is turning positive, and the asset is ready to climb higher. The cup and handle pattern is particularly strong in signaling upward momentum, and if confirmed, could lead to a sustained rally. Traders should remain alert to the reversal of the downtrend as it often precedes a new bullish phase for the asset.
Price Targets and Resistance Levels
If the breakout from the cup and handle pattern occurs as expected, ENA/USDT could target the $2.10 level. This target aligns with a critical resistance zone and marks a significant upside potential. The immediate resistance is located at $1.30, so a decisive move above this level would serve as a key confirmation of the breakout. A successful break above $1.30 would strengthen the bullish case for ENA/USDT, suggesting that the asset is poised to continue its upward trajectory.
Traders should monitor price action carefully, as a move past this resistance level would signal that the pattern is playing out as anticipated, with the potential for further gains. It is important to watch for sustained volume to confirm the breakout, as this would signal the likelihood of a sustained rally.
Conclusion
The ENA/USDT chart is currently forming a promising cup and handle pattern, which suggests a potential bullish breakout if the pattern completes successfully. A breakout above the resistance at $1.30 would be a critical confirmation, opening the path for a move toward $2.10. Traders should keep a close eye on the developing price action and watch for signs of the downtrend reversal to position themselves for a potential upward move.