Ethena [ENA] Breakout Possibilities Amidst Bitcoin's Soaring Prices
Moving closer to Ethena's anticipated resistance level at $0.36, the question remains whether this hurdle will be overcome or a market correction may disrupt the progress.
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Ethena [ENA] has been trading within a descending channel since March, but the recent Bitcoin [BTC] surge past $100k has sent ENA soaring by 27% at press time, despite doubts about organic demand.
Is ENA Primed for a Breakout?
Source: ENA/USDT on TradingView
Tech indicators favor bulls on the 1-day timeframe, with the OBV showing a minor dip over the past two weeks, as ENA dropped from $0.365 to $0.256. However, the gains within the past 24 hours are accompanied by an uptick on the OBV and the MFI, suggesting that if maintained for a week or two, ENA could potentially break out beyond the channel highs, with resistance at $0.355-$0.365.
Source: ENA/USDT on TradingView
On the 1-hour chart, a bearish divergence between the MFI and price suggests an impending correction. This correction may see ENA dip to the $0.318 or $0.313 levels, which are support levels in lower timeframes.
Untested Liquidity Levels
Source: Coinglass
The liquidation heatmap data of the past month shows a cluster of liquidity that remains untested overhead, with a particularly dense cluster at $0.343. The $0.36 level also stands out as a magnetic zone and a potential price target. Traders in long positions may consider booking profits around the $0.36 region, as it aligns well with the channel highs of ENA.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice and is solely the author's opinion.Take our Survey and win $500 USDT Ripple-SEC settlement: Implications for XRP investors Bitcoin surges past $100K again: Is the rally sustainable this time?*
- While Ethena [ENA] has been confined within a descending channel since March, the recent surge of Bitcoin [BTC] beyond $100k has sparked a 27% rise in ENA, leading some to speculate about a potential breakout.
- In the realm of crypto finance, the current investing landscape is not just about Bitcoin [BTC] and Ethereum [ETH]. Altcoins like ENA are also catching the attention of investors, as technology continues to revolutionize the industry.
- The 1-day chart for ENA/USDT on TradingView indicates bullish signs, with the On Balance Volume (OBV) showing an uptick and the Moving Fine Indicator (MFI) trending upwards. This suggests that ENA could potentially break out if these trends persist for another week or two.
- As the liquidation heatmap data from Coinglass reveals, there are untested liquidity levels overhead, with a significant cluster at $0.343 and the $0.36 level emerging as a magnetic zone. Traders holding long positions on ENA might consider booking profits at around the $0.36 level, considering its alignment with the channel highs.
