Ethena (ENA) Attempting a Recovery Wave After Bybit Hack Disrupted Its Major Breakout

The lack of clear direction has influenced Ethena to move in a consolidation mood for multiple weeks now. Today, MACrypto shared a technical analysis

Ethena (ENA) has been encountering difficulties in recent times, with its price failing to establish a clear direction. However, as the token consolidates within a tight compression, prominent analyst MACrypto took to X to share their analysis, suggesting that a significant price move could be brewing.

$ENA is attempting a major breakout

It broke above this yesterday but was dumped due to Bybit hack news.

It feels like ENA recovery has started. pic.twitter.com/xdeedBao3U

Ethena attempts to make a recovery wave

Ethena has been displaying a consolidation mood for multiple weeks now, as there is a lack of clear direction in its price movement. Today, MACrypto shared a technical analysis on X, revealing that Ethane is attempting a major breakout. ENA’s price was testing a significant supply at $0.47/0.48 when an unfortunate news hit the market, creating further market volatility.

Yesterday, on Friday, Feb.21, the crypto exchange ByBit was hit by a $1.4 billion security breach. The incident sparked fear among investors, causing increased price movements in the broader cryptocurrency market. However, ByBit acted quickly and ensured the safety of investors’ funds.

According to MACrypto’s analysis, Ethena’s recovery seems to be starting now. Its current price compression is providing an opportunity for an accumulation phase, which would eventually lead to a market rebound soon.

Updates on ENA price

Despite the current setback in the market, Ethena is showing signs of a potential recovery. The altcoin has seen an extended decreasing trend over the past month. After the significant price decreases, ENA is now testing crucial support levels, sparking speculation on its next trajectory.

At press time, the asset’s price is valued at $0.4421 after seeing a 4.9% decrease over the past day. However, the on-chain indicators are hinting at a possible recovery. The Tom DeMark indicator currently shows multiple buy signals, indicating a change in momentum and a possible uptrend for the asset.

The coin is currently attempting to navigate within a key range between $0.41 and $0.47. This zone is critical for the token’s movement as it has the potential to reverse the ongoing downtrend and pave the way for an uptrend. If the asset manages to maintain its value around this zone, it can further propel itself into another key region between $0.53 and $0.59. This area is crucial in determining whether the asset will pull away from its dip or continue embracing the downtrend.

Despite the current price downtrend, ENA has seen a significant increase in trader interest. The number of active wallets holding the token have increased by 187.03% over the past week, indicating a rising demand for the altcoin. The data also suggests that traders are holding onto their tokens rather than engaging in active regular trading. This surging increase in wallets indicates a growing interest in the asset despite its recent price decline.

As Ethena tests its crucial support levels, the increasing new addresses and the bullish signals from the TD Sequential index suggest that a market recovery may be on the horizon. If ENA can maintain its price around the support levels of $0.42 and $0.46 and penetrate the resistance levels of $0.52 and $0.58, it could experience an uptrend in the upcoming weeks.