ENA Price Analysis: Synthetic Dollar Protocol Token Faces Bearish Pressure Despite Market Recovery

ENA, the native token of the synthetic dollar protocol Ethena, is facing significant bearish pressure despite an overall recovering market

Crypto analyst Ali Martinez has warned that the native token of the synthetic dollar protocol Ethena (ENA) could face a major price crash if it fails to reclaim a crucial support level.

Despite an overall recovering market, ENA is facing significant bearish pressure, as highlighted by Martinez in a post on X (formerly Twitter). He points out that the token has broken out of a parallel channel with the upper trendline acting as resistance and the lower trendline providing support. This breakout is bearish and suggests potential downward momentum for ENA.

According to Martinez, traders should wait for confirmation as the breakout could be a fakeout. However, ENA is at risk of a price correction to $0.69 or even $0.57. To avoid this, ENA needs to reclaim the $0.86 support level and target $1.

At the time of writing, ENA is trading at $0.8201, up 1.68% in the past 24 hours. The token’s market cap is $2.48 billion, ranking it as the 47th-largest digital asset on CoinMarketCap. However, ENA has plummeted 16.50% in the last week and 33.21% in the past month.

ENA Price Analysis

A daily chart from TradingView (shown below) reveals that the Relative Strength Index (RSI) is at 40.02, indicating that bears are in control of ENA’s price action. The RSI line’s slope suggests this bearish trend may continue.

The Moving Average Convergence Divergence (MACD) also paints a concerning picture. The signal line (red) remains above the MACD line (blue), and the MACD histogram is also red. However, the histogram’s intensity is waning, which could offer a glimmer of hope for ENA.

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